Arbeitspapier

Shirking, Commuting and Labor Market Outcomes

Recent theoretical work has examined the spatial distribution of unemployment using the efficiency wage model as the mechanism by which unemployment arises in the urban economy. This paper extends the standard efficiency wage model in order to allow for behavioral substitution between leisure time at home and effort at work. In equilibrium, residing at a location with a long commute affects the time available for leisure at home and therefore affects the trade-off between effort at work and risk of unemployment. This model implies an empirical relationship between expected commutes and labor market outcomes, which is tested using the metropolitan sample of the American Housing Survey. The empirical results suggest that shirking and leisure are complementary with the marginal benefit of shirking increasing with an individual's net time endowment.

Language
Englisch

Bibliographic citation
Series: IUI Working Paper ; No. 627

Classification
Wirtschaft
Labor Contracts
Land Use Patterns
Subject
Efficiency Wage
Leisure
Urban Unemployment
American Housing Survey
Effizienzlohn
Freizeit
Arbeitsmarkt
USA
Pendelverkehr

Event
Geistige Schöpfung
(who)
Ross, Stephen L.
Zenou, Yves
Event
Veröffentlichung
(who)
The Research Institute of Industrial Economics (IUI)
(where)
Stockholm
(when)
2004

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Ross, Stephen L.
  • Zenou, Yves
  • The Research Institute of Industrial Economics (IUI)

Time of origin

  • 2004

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