Straight-time and Overtime: A Sequential-Lottery Approach

Aleksandar Vasilev

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: This note explores the problem of aggregation with non-convex labor supply decisions in an economy with both straight time and overtime. In contrast to Hansen and Sargent (1988), the paper models this as a sequential decision. Instead of changing from one to infinity, with a sequential non-convexity, the aggregate elasticity of labor supply for overtime work is a function of overall participation rate, and the aggregate elasticity of labor supply for full-time work depends on the share of workers doing overtime.

Keywords: straight time; overtime; indivisible labor; sequential lottery (search for similar items in EconPapers)
JEL-codes: E13 J2 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-ger
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Citations: View citations in EconPapers (5)

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https://www.econstor.eu/bitstream/10419/142243/1/overtime_lotteries_TPREF.pdf (application/pdf)

Related works:
Journal Article: Straight-Time and Overtime: A Sequential-Lottery Approach (2016)
Journal Article: Straight-time and Overtime: A Sequential-Lottery Approach (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:142243

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