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Addiction to work: An Inelastic Wage Elasticity of Labour Supply Equals Long Hours of Work

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  • Donatella Cavagnoli

    () (La Trobe University)

Abstract

A phenomenon of the last twenty years is the growth of ‘very long hours’ of work, especially amongst high-skilled labour. This is an unexpected reversal of a long trend in the opposite direction. This paper criticises the Beckerian analysis of labour-leisure choice. It argues that the more time is consumed in paid work, the more are preferences for paid work affected by it; thereby creating a vicious cycle of consumption patterns which lead to longer than expected hours of work.

Suggested Citation

  • Donatella Cavagnoli, 2008. "Addiction to work: An Inelastic Wage Elasticity of Labour Supply Equals Long Hours of Work," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 11(2), pages 129-147, June.
  • Handle: RePEc:ozl:journl:v:11:y:2008:i:2:p:129-147
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    More about this item

    Keywords

    Time Allocation and Labor Supply Labor Economics: General Intertemporal Consumer Choice; Life Cycle Models and Saving;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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