A structural and empirical model of subsistence activity behavior and income

Abstract

This paper develops a structural and empirical model of subsistence activity behavior and income. Subsistence activity decisions (work participation and hours of work decisions) and income have an important bearing on activity and travel behavior of individuals. The proposed structural model represents an effort to analyze subsistence activity behavior and income earnings to support a better understanding, and reliable forecasting, of individual travel behavior. The empirical model formulates and estimates an integrated model of employment, hours of work and income which takes account of interdependencies among these choices and their structural relationships with other relevant variables. Social factors that inhibit an individual's employment and work hours decision and affect an individual's income are incorporated in the model. A sample of households from the Dutch National Mobility Panel is used in the empirical analysis.