Non-pecuniary Value of Employment and Individual Labor Supply
Y. Hossein Farzin () and
No 2004.158, Working Papers from Fondazione Eni Enrico Mattei
Recognizing that people value employment not only to earn income to satisfy their consumption needs but also as a means of community involvement that provides socio-psychological (non-pecuniary) benefits, we show that once the non-pecuniary benefits of employment are incorporated in the standard individual’s utility function, then at very low income levels employment can be a source of utility, inducing individuals to supply labor to the extent possible. We also show the conditions under which a greater non-pecuniary effect of employment generates a larger individual labor supply.
Keywords: Non-pecuniary effects; Employment value; Labor supply (search for similar items in EconPapers)
JEL-codes: D62 J22 I31 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2004.158
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