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Shirking, Commuting and Labor Market Outcomes

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  • Ross, Stephen L.

    (University of Connecticut)

  • Zenou, Yves

    ()
    (The Research Institute of Industrial Economics)

Abstract

Recent theoretical work has examined the spatial distribution of unemployment using the efficiency wage model as the mechanism by which unemployment arises in the urban economy. This paper extends the standard efficiency wage model in order to allow for behavioral substitution between leisure time at home and effort at work. In equilibrium, residing at a location with a long commute affects the time available for leisure at home and therefore affects the trade-off between effort at work and risk of unemployment. This model implies an empirical relationship between expected commutes and labor market outcomes, which is tested using the metropolitan sample of the American Housing Survey. The empirical results suggest that shirking and leisure are complementary with the marginal benefit of shirking increasing with an individual's net time endowment.

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 627.

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Length: 43 pages
Date of creation: 13 Aug 2004
Date of revision:
Handle: RePEc:hhs:iuiwop:0627

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Keywords: Efficiency Wage; Leisure; Urban Unemployment; American Housing Survey;

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References

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Cited by:
  1. Ross, Stephen L. & Zenou, Yves, 2007. "Are Shirking and Leisure Substitutable? An Empirical Test of Efficiency Wages Based on Urban Economic Theory," IZA Discussion Papers 2601, Institute for the Study of Labor (IZA).
  2. Giovanni Russo & Peter Nijkamp & Aura Reggiani & Federico Tedeschi, 2011. "Commuters' effect on local labour markets: A german case study," ERSA conference papers ersa10p1376, European Regional Science Association.

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