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Quel loisir pour les allocataires du RMI ? L'arbitrage consommation/loisir revisité

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Abstract

In this paper, we build a renewed labour supply model in order to explain why the RMI recipients don't «fall in poverty traps» but on the contrary accept to work even for low wages. The standard consumption-leisure trade-off is extended : we consider that one needs a minimum consumption level that the non-working time can be either leisure time or to idle time. In the standard labour supply model, leisure which enters in the utility function is implicitly defined as the non-working time. This is regrettable since this period of time is not entirely dedicated to pleasant activities. One can «do nothing» : this «non activity» can be modelled as an inferior good. In this "consumption-leisure-idle time" trade-off, labour supply depends on how much the worker can consume over the survival level and on what he does during non-working time. RMI recipients' consumption is close to the survival level and they have not much to spend on leisure : labour supply is inelastic to wage and there are no traps.

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File URL: ftp://mse.univ-paris1.fr/pub/mse/cahiers2004/R04106.pdf
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Bibliographic Info

Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number r04106.

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Length: 22 pages
Date of creation: Sep 2004
Date of revision:
Handle: RePEc:mse:wpsorb:r04106

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Related research

Keywords: Unemployment and poverty traps; consumption/leisure trade-off; RMI.;

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References

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  1. Marc Gurgand & David Margolis, 2001. "RMI et revenus du travail : une évaluation des gains financiers à l'emploi," Économie et Statistique, Programme National Persée, vol. 346(1), pages 103-122.
  2. Thomas Piketty, 1998. "L'impact des incitations financières au travail sur les comportements individuels : une estimation pour le cas français," Économie et Prévision, Programme National Persée, vol. 132(1), pages 1-35.
  3. François Bourguignon, 2001. "Revenu minimum et redistribution optimale des revenus : fondements théoriques," Économie et Statistique, Programme National Persée, vol. 346(1), pages 187-204.
  4. Danièle Guillemot & Patrick Pétour & Hélène Zajdela, 2002. "Trappe à chômage ou trappe à pauvreté. Quel est le sort des allocataires du RMI ?," Revue économique, Presses de Sciences-Po, vol. 53(6), pages 1235-1252.
  5. Pierre CAHUC & Hubert KEMPF & Thierry VERDIER, 2001. "Intéractions sociales et comportements économiques / Social Behavior and Economic Behavior," Annales d'Economie et de Statistique, ENSAE, issue 63-64, pages 1-19.
  6. Bernard Gazier & Hélène Zajdela, 2006. ""Making work pay" : from justifications to implementations," Cahiers de la Maison des Sciences Economiques r06073, Université Panthéon-Sorbonne (Paris 1).
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