Artikel

Aggregation with a non-convex labor supply decision, unobservable effort, and incentive ("fair") wages

The purpose of this note is to explore the problem of a non-convex labor supply decision in an economy with unobservable effort and incentive ("fair") wages a la Danthine and Kurmann (2004), and explicitly perform the aggregation presented there without a formal proof, and thus provide - starting from micro-foundations - the derivation of the expected utility function used for the aggregate household. We show how lotteries as in Rogerson (1988) can be used to convexify consumption sets, and aggregate over individual preferences. With a discrete labor supply decisions, the elasticity of aggregate labor supply becomes a function of effort.

Sprache
Englisch

Erschienen in
Journal: Theoretical and Practical Research in Economic Fields ; ISSN: 2068-7710 ; Volume: 9 ; Year: 2018 ; Issue: 2(18) ; Pages: 144-147 ; Craiova: ASERS

Klassifikation
Wirtschaft
Time Allocation and Labor Supply
Labor Contracts
Thema
Aggregation
Indivisible labor
Unobservable effort
Fair wages
Non-convexities

Ereignis
Geistige Schöpfung
(wer)
Vasilev, Aleksandar
Ereignis
Veröffentlichung
(wer)
ASERS
ZBW – Leibniz Information Centre for Economics
(wo)
Craiova
(wann)
2018

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Artikel

Beteiligte

  • Vasilev, Aleksandar
  • ASERS
  • ZBW – Leibniz Information Centre for Economics

Entstanden

  • 2018

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