Women, especially mothers, have a demand for temporal flexibility in work arrangements. Findings in developed-country contexts indicate that penalties associated with flexibility are higher in self-employment than in wage employment, yet this may not be true in a developing country. Using Indonesian household data, I ask whether the cost of working hours and the temporal flexibility varies between wage employment and self-employment. Using a multi-sector choice model which allows for job-specific sources of observed and unobserved heterogeneity in women's preferences, I find all women are willing to give up a portion of their wage rate to work fewer hours and have more flexible hours. However, the cost to women of fewer hours and greater flexibility varies by whether a woman is self-employed or wage employed and whether she has children. All self-employed women and wage-working mothers are willing to give up more than 10% of their wages for a 10% increase in flexibility but the trade-off is steeper for mothers in wage employment than in self-employment. In particular, self-employed mothers will give up one-third of their wage rate to access the flexibility and hour equivalent to working one fewer day a week over a working year. These findings have implications for policies and programs designed to foster entrepreneurship in developing countries.

The Role of Parental Wealth and Income in Financing Children’s College Attendance and Its Consequences”  (with V. Joseph Hotz, Emily Wiemers, Joshua Rasmussen), NBER Working Paper Series, October 2018.