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Equal Division, Efficiency, and the Sovereign Supply of Labor

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Kranich, Laurence

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Abstract

The canonical problem of equity in production economies consists of two agents with different tastes and abilities, each of whom contributes labor to produce a single consumption good. As a criterion for distributive justice, the author requires that if both agents work equal numbers of hours, they should divide the output equally. He also requires that the labor-supply decision should remain sovereign. Sufficient conditions are established for achieving an efficient allocation using a division procedure that is consistent with the equal-division-for-equal-work principle and it is shown that the conditions are satisfied in many standard economies. Copyright 1994 by American Economic Association.

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Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 84 (1994)
Issue (Month): 1 (March)
Pages: 178-89
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Handle: RePEc:aea:aecrev:v:84:y:1994:i:1:p:178-89

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  1. Jörg Franke, 2007. "Does Affirmative Action Reduce Effort Incentives? A Contest Game Analysis," UFAE and IAE Working Papers 711.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
  2. Naoki Yoshihara, 2007. "On Non-welfarist Social Ordering Functions," Discussion Paper Series a497, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  3. Akira Yamada & Naoki Yoshihara, 2008. "Mechanism design for a solution to the tragedy of commons," Review of Economic Design, Springer, vol. 11(4), pages 253-270, February. [Downloadable!] (restricted)
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  4. Akira Yamada & Naoki Yoshihara, 2006. "Triple Implementation by Sharing Mechanisms in Production Economies with Unequal Labor Skill," Discussion Paper Series a475, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
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  5. Reiko Gotoh & Kotaro Suzumura & Naoki Yoshihara, 2004. "Extended Social Ordering Functions for Rationalizing Fair Game Forms à la Rawls and Sen," Discussion Paper Series a455, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
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