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ocial Status and the Overworked Consumer

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  • Pierre Cahuc
  • Fabien Postel-Vinay

Abstract

A policy restricting working hours may be justified if agents care about their social status, as the race for status induces them to work too much. We show that this intuition is questionable if the commitment capacity of the government is limited: status seeking does press people to supply excessive labor relative to the social optimum, yet the time consistent policy of a government controlling working hours implies a shortage of hours.

Suggested Citation

  • Pierre Cahuc & Fabien Postel-Vinay, 2005. "ocial Status and the Overworked Consumer," Annals of Economics and Statistics, GENES, issue 78, pages 143-161.
    • Handle: RePEc:adr:anecst:y:2005:i:78:p:143-161
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    File URL: http://www.jstor.org/stable/20079132
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    Cited by:

    1. Goerke, Laszlo, 2013. "Profit sharing and relative consumption," Economics Letters, Elsevier, vol. 118(1), pages 167-169.
    2. Pierre Cahuc & André Zylberberg, 2008. "Reduction of working time and unemployment," Post-Print halshs-00255770, HAL.
    3. Goerke, Laszlo, 2013. "Relative consumption and tax evasion," Journal of Economic Behavior & Organization, Elsevier, vol. 87(C), pages 52-65.
    4. Patrick Artus & Pierre Cahuc & André Zylberberg, 2007. "Réglementation du temps de travail, revenu et emploi," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00255820, HAL.
    5. Goerke, Laszlo & Hillesheim, Inga, 2013. "Relative consumption, working time, and trade unions," Labour Economics, Elsevier, vol. 24(C), pages 170-179.

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