Non-pecuniary Value of Employment and Individual Labor Supply
AbstractRecognizing 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.
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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2004.158.
Date of creation: Dec 2004
Date of revision:
Non-pecuniary effects; Employment value; Labor supply;
Find related papers by JEL classification:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-01-16 (All new papers)
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- Y. Hossein Farzin & Ken-Ichi Akao, 2006. "Non-pecuniary Value of Employment and Natural Resource Extinction," Working Papers 2006.24, Fondazione Eni Enrico Mattei.
- Y. Hossein Farzin & Ken-Ichi Akao, 2006. "When is it Optimal to Exhaust a Resource in a Finite Time?," Working Papers 2006.23, Fondazione Eni Enrico Mattei.
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