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Work hours, social value of leisure and globalisation


  • Hansen, Jørgen Drud
  • Molana, Hassan
  • Montagna, Catia
  • Nielsen, Jørgen Ulff-Møller


We examine how openness interacts with the coordination of consumption–leisure decisions in determining the equilibrium working hours and wage rate when there are leisure externalities (e.g., due to social interactions). The latter are modelled by allowing a worker's marginal utility of leisure to be increasing in the leisure time taken by other workers. Coordination takes the form of internalising the leisure externality and other relevant constraints (e.g., labour demand). The extent of openness is measured by the degree of capital mobility. We find that: coordination lowers equilibrium work hours and raises the wage rate; there is a U-shaped (inverse-U-shaped) relationship between work hours (wages) and the degree of coordination; coordination is welfare improving; and, the gap between the coordinated and uncoordinated work hours (and the corresponding wage rates) is affected by the extent and nature of openness.

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  • Hansen, Jørgen Drud & Molana, Hassan & Montagna, Catia & Nielsen, Jørgen Ulff-Møller, 2012. "Work hours, social value of leisure and globalisation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(3), pages 317-326.
  • Handle: RePEc:eee:soceco:v:41:y:2012:i:3:p:317-326 DOI: 10.1016/j.socec.2012.01.001

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    References listed on IDEAS

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    Cited by:

    1. Goerke, Laszlo, 2013. "Relative consumption and tax evasion," Journal of Economic Behavior & Organization, Elsevier, vol. 87(C), pages 52-65.
    2. repec:bla:scotjp:v:64:y:2017:i:2:p:115-142 is not listed on IDEAS
    3. Laszlo Goerke, 2016. "Sick Pay Reforms and Health Status in a Unionised Labour Market," IAAEG Discussion Papers until 2011 201604, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    4. Goerke, Laszlo & Hillesheim, Inga, 2013. "Relative consumption, working time, and trade unions," Labour Economics, Elsevier, vol. 24(C), pages 170-179.
    5. Laszlo Goerke, 2017. "Sick pay reforms and health status in a unionised labour market," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(2), pages 115-142, May.

    More about this item


    Coordination; Corporatism; Openness; Capital mobility; Social multiplier; Welfare; Work hours;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor


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