Aggregation with a double non-convex labor supply decision: indivisible private- and public-sector hours

Aleksandar Vasilev

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: This paper explores the problem of non-convex labor supply decisions in an economy with both private and public sector jobs. To this end, Hansen (1985) and Rogerson's (1988) indivisible-hours framework is extended to an environment featuring a double discrete labor choice. The novelty of the study is that the micro-founded representation obtained from explicit aggregation over homogeneous individuals features different disutility of labor across the two sectors, which is in line with the observed difference in average wage rates (OECD 2011). This theory-based utility function could be then utilized to study labor supply responses over the business cycle.

Keywords: indivisible labor; public employment; aggregation; labor supply elasticity (search for similar items in EconPapers)
JEL-codes: J22 J30 J45 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-pbe and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/142233/1/Vasilev_2015a.pdf (application/pdf)

Related works:
Journal Article: Aggregation with a double non-convex labor supply decision: indivisible private- and public-sector hours (2016)
Journal Article: Aggregation with a double non-convex labor supply decision: indivisible private- and public-sector hours (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:142233

Access Statistics for this paper

More papers in EconStor Preprints from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().