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Individual and Aggregate Labor Supply with Coordinated Working Times

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  • RICHARD ROGERSON

Abstract

I analyze two extensions to the standard model of life‐cycle labor supply that feature operative choices along both the intensive and extensive margin. One assumes that individuals face continuous wage‐hours schedules, while the other assumes that all work must be coordinated across individuals. Though similar qualitatively, the two models have very different implications for aggregate labor supply responses to tax policy. In the first model, curvature in the individual utility from leisure function plays relatively little role, but in the second model, it is of first‐order importance. The second model also has important implications for what data are best able to provide evidence on the extent of curvature in the utility from leisure function.
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  • Richard Rogerson, 2011. "Individual and Aggregate Labor Supply with Coordinated Working Times," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43, pages 7-37, August.
  • Handle: RePEc:mcb:jmoncb:v:43:y:2011:i::p:7-37
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    1. repec:hal:spmain:info:hdl:2441/45smbs6p8180bqfu6epmve62q2 is not listed on IDEAS
    2. Richard Rogerson & Johanna Wallenius, 2018. "Household Time Use Among Older Couples: Evidence and Implications for Labor Supply," 2018 Meeting Papers 90, Society for Economic Dynamics.
    3. Labanca, Claudio & Pozzoli, Dario, 2022. "Hours Constraints and Wage Differentials across Firms," IZA Discussion Papers 14992, Institute of Labor Economics (IZA).
    4. Yurdagul, Emircan, 2017. "Production complementarities and flexibility in a model of entrepreneurship," Journal of Monetary Economics, Elsevier, vol. 86(C), pages 36-51.
    5. German Cubas & Chinhui Juhn & Pedro Silos, 2023. "Coordinated Work Schedules and the Gender Wage Gap," The Economic Journal, Royal Economic Society, vol. 133(651), pages 1036-1066.
    6. Ryan Michaels & Michele Battisti, 2013. "Coordinated labor Supply within the Firm: Evidence and Implications," 2013 Meeting Papers 1116, Society for Economic Dynamics.
    7. Philippe Choné & Guy Laroque, 2014. "Income tax and retirement schemes," Sciences Po publications 2014-06, Sciences Po.
    8. Labanca, Claudio & Pozzoli, Dario, 2018. "Coordination of Hours within the Firm," Working Papers 7-2018, Copenhagen Business School, Department of Economics.
    9. Philippe Choné & Guy Laroque, 2014. "Income tax and retirement schemes," SciencePo Working papers Main hal-01070554, HAL.
    10. Richard Rogerson & Johanna Wallenius, 2019. "Household Time Use among Older Couples: Evidence and Implications for Labor Supply Parameters," The Quarterly Journal of Economics, Oxford University Press, vol. 134(2), pages 1079-1120.
    11. Erich Battistin & Agar Brugiavini & Enrico Rettore & Guglielmo Weber, 2009. "The Retirement Consumption Puzzle: Evidence from a Regression Discontinuity Approach," American Economic Review, American Economic Association, vol. 99(5), pages 2209-2226, December.
    12. Yurdagul, Emircan & Shao, Lin & Sohail, Faisal, 2022. "Are Working Hours Complements in Production?," CEPR Discussion Papers 17311, C.E.P.R. Discussion Papers.
    13. Françoise Delmez & Vincent Vandenberghe, 2017. "Working long hours: less productive but less costly? Firm-level evidence from Belgium," LIDAM Discussion Papers IRES 2017022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    14. Philippe Choné & Guy Laroque, 2017. "Optimal Income Tax in an Extensive Labor Supply Life-cycle Model," CESifo Economic Studies, CESifo, vol. 63(1), pages 78-96.
    15. Michele Battisti & Ryan Michaels & Choonsung Park, 2016. "Labor supply within the firm," ifo Working Paper Series 222, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    16. Rogerson, Richard & Wallenius, Johanna, 2016. "Retirement, home production and labor supply elasticities," Journal of Monetary Economics, Elsevier, vol. 78(C), pages 23-34.
    17. Ana I. Moro Egido & Joaquin Naval & Jose I. Silva, 2023. "Part-time hours and wages," ThE Papers 23/06, Department of Economic Theory and Economic History of the University of Granada..
    18. Shao, Lin & Sohail, Faisal & Yurdagul, Emircan, 2023. "Are working hours complements in production?," Journal of Economic Dynamics and Control, Elsevier, vol. 153(C).
    19. repec:hal:wpspec:info:hdl:2441/45smbs6p8180bqfu6epmve62q2 is not listed on IDEAS
    20. Michael Keane & Richard Rogerson, 2012. "Micro and Macro Labor Supply Elasticities: A Reassessment of Conventional Wisdom," Journal of Economic Literature, American Economic Association, vol. 50(2), pages 464-476, June.

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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