Second job-holding in an emerging economy: the role of household shocks

Moonlighting is a strategy adopted by workers to generate sufficient income to cover their needs. Studies have been conducted mainly in advanced economies, although this is a feature of emerging economies. This paper, first, proposes a formal model of second job choice, which extends the theoretical literature on multiple jobs by endogenously modelling second job choice in the context of search models. Second, this paper assesses the role of income and working hours in the main job, but unlike previous literature, the effects of household shocks on the second job choice are assessed. The results show that household shocks are important in the second job choice, the history of household shocks matters, the household shock impact is greater in workers that have an informal main job, there is no difference in the household shock impact by gender, and household demand shock seems to be more important than household supply shock