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Non-pecuniary Value of Employment and Natural Resource Extinction

Y. Hossein Farzin () and Ken-Ichi Akao

No 190911, Working Papers from University of California, Davis, Department of Agricultural and Resource Economics

Abstract: We assume that people value employment not only to earn income to satisfy their consumption needs but also as a means of community/social involvement that provides socio-psychological (non-pecuniary) benefits. We show that the latter incentive can encourage full employment harvesting resources and explain why poor resource-based communities may exhaust a natural resource in a finite time even if there is a sustainable path of resource consumption available. We show that communities could sustain their natural resources by using outside-the-community employment and economic diversification, but, to be effective, such policies must ensure that the outside wage rate and the initial capital stock are above certain minimum levels, which will be higher the longer these policies are delayed.

Keywords: Labor and Human Capital; Resource /Energy Economics and Policy (search for similar items in EconPapers)
Pages: 27
Date: 2005-11
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http://ageconsearch.umn.edu/record/190911/files/WP05-009.pdf (application/pdf)

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Working Paper: Non-pecuniary Value of Employment and Natural Resource Extinction (2006) Downloads
Working Paper: Non-pecuniary Value of Employment and Natural Resource Extinction (2006) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucdavw:190911

DOI: 10.22004/ag.econ.190911

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