IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v25y1992i3p507-20.html
   My bibliography  Save this article

The Role of Household Production in Models of Involuntary Unemployment and Underemployment

Author

Listed:
  • Ed Nosal
  • Richard Rogerson
  • Randall Wright

Abstract

A classic result in the theory of labor contracts with asymmetric information is that underemployment results if and only if leisure is an inferior good. A classic result in models where unemployment occurs because of indivisibilities, including implicit contract models and some equilibrium macroeconomic models, is that unemployment is involuntary if and only if leisure is an inferior good. The authors introduce household production into otherwise standard versions of these models and show that this implies they can have underemployment in asymmetric-information models or involuntary unemployment in indivisible-labor models without assuming that leisure is inferior.

Suggested Citation

  • Ed Nosal & Richard Rogerson & Randall Wright, 1992. "The Role of Household Production in Models of Involuntary Unemployment and Underemployment," Canadian Journal of Economics, Canadian Economics Association, vol. 25(3), pages 507-520, August.
  • Handle: RePEc:cje:issued:v:25:y:1992:i:3:p:507-20
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0008-4085%28199208%2925%3A3%3C507%3ATROHPI%3E2.0.CO%3B2-E
    Download Restriction: only available to JSTOR subscribers

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maliar, Lilia & Maliar, Serguei, 2000. "Differential Responses of Labor Supply across Productivity Groups," Journal of Macroeconomics, Elsevier, vol. 22(1), pages 85-108, January.
    2. Noritaka Kudoh, 2007. "Unemployment Policies In An Economy With Adverse Selection," Bulletin of Economic Research, Wiley Blackwell, vol. 59(2), pages 179-196, April.
    3. Daniel Kuehn, 2016. "Home Production, House Values, and the Great Recession," Journal of Family and Economic Issues, Springer, vol. 37(1), pages 99-114, March.
    4. Cellarier, Laurent L., 2013. "A family production overlapping generations economy," Journal of Economic Dynamics and Control, Elsevier, vol. 37(11), pages 2168-2179.
    5. Pietro Garibaldi & Etienne Wasmer, 2005. "Equilibrium Search Unemployment, Endogenous Participation, And Labor Market Flows," Journal of the European Economic Association, MIT Press, vol. 3(4), pages 851-882, June.
    6. Gomes, Joao & Greenwood, Jeremy & Rebelo, Sergio, 2001. "Equilibrium unemployment," Journal of Monetary Economics, Elsevier, vol. 48(1), pages 109-152, August.
    7. Bridgman, Benjamin, 2016. "Home productivity," Journal of Economic Dynamics and Control, Elsevier, vol. 71(C), pages 60-76.
    8. Andrew Atkeson & Patrick J. Kehoe, 1995. "Optimal social insurance, incentives, and transition," Working Papers 546, Federal Reserve Bank of Minneapolis.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:25:y:1992:i:3:p:507-20. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler). General contact details of provider: http://edirc.repec.org/data/ceaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.