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Working Hours and Hedonic Wages in the Market Equilibrium

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Author Info
Kinoshita, Tomio
Abstract

In the conventional model of labor supply, working hours are implicitly assumed to be divisible goods, which is an obviously unrealistic assumption. The purpose of this paper is to analyze working hours as indivisible goods. When working hours are indivisible, labors are differentiated in the market by their length, and wages will be a function of working hours. The main conclusions are that (1) in the market equilibrium, the elasticity of the hedo nic wage curve with respect to hourly wage rates must be positive or less than A1 and (2) generally data will reveal neither demand nor su pply structures. Copyright 1987 by University of Chicago Press.

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Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 95 (1987)
Issue (Month): 6 (December)
Pages: 1262-77
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Handle: RePEc:ucp:jpolec:v:95:y:1987:i:6:p:1262-77

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  1. Wolf, Elke, 2001. "Comparing the part-time wage gap in Germany and the Netherlands," ZEW Discussion Papers 01-18, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  2. repec:ese:iserwp: is not listed on IDEAS
  3. Stefan Sebastian Fahrlaender, 2005. "Semiparametric Construction of Spatial Generalized Hedonic Models for Private Properties," Diskussionsschriften dp0507, Universitaet Bern, Departement Volkswirtschaft. [Downloadable!]
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  4. Chung-cheng Lin, 2001. "A Comment on "Labor Markets, Unemployment, and Minimum Wages: A New View."," Eastern Economic Journal, Eastern Economic Association, vol. 27(1), pages 71-82, Winter. [Downloadable!]
  5. Terry J. Fitzgerald, 1996. "Work schedules, wages, and employment in a general equilibrium model with team production," Working Paper 9613, Federal Reserve Bank of Cleveland. [Downloadable!]
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  6. Strobl, Eric & Walsh, Frank, 2008. "The Ambiguous Effect of Minimum Wages on Workers and Total Hours," IZA Discussion Papers 3643, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Hart, Robert A. & Ma, Yue, 2008. "Wage-Hours Contracts, Overtime Working and Premium Pay," IZA Discussion Papers 3797, Institute for the Study of Labor (IZA). [Downloadable!]
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