A behavioral model of labor supply: Casting some light into the black box of income-leisure choice

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39 Citations (Scopus)

Abstract

The economics of labor supply, a basic building block of economic theory, cannot provide any substantive analytical predictions on the course of labor supply by an individual or a group. This is largely due to the absence, in the theory of income-leisure choice, of any consequential behavioral content which speaks to existing and changing preferences of individuals and to the differences in preferences across individuals. Introducing a discussion of preferences into the argument, in particular target real income and target nonmarket time, provides for a richer model of labor supply and for a more precise set analytical predictions with important public policy implications.

Original languageEnglish
Pages (from-to)199-219
Number of pages21
JournalJournal of Socio-Economics
Volume30
Issue number3
DOIs
Publication statusPublished - 6 May 2001

Keywords

  • D10
  • J22
  • Labor supply
  • N300
  • Preferences
  • Target income

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