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Unemployment and the Supply of Labor

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  • Samuel A. Rea Jr.

Abstract

This paper integrates reported unemployment into a model of labor supply. Given the assumption that the individual faces a fixed wage rate, the model enables one to estimate empirically the proportion of reported unemployment that is leisure time. From cross section data, these estimates range from about half for married women to zero for men whose wives are out of the labor force. It is concluded that (1) unemployment is partly leisure, (2) the loss of income during a period of unemployment increases hours worked when employment is found, and (3) there is only a slight additional worker effect.

Suggested Citation

  • Samuel A. Rea Jr., 1974. "Unemployment and the Supply of Labor," Journal of Human Resources, University of Wisconsin Press, vol. 9(2), pages 279-289.
    • Handle: RePEc:uwp:jhriss:v:9:y:1974:i:2:p:279-289
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    Cited by:

    1. Marie-Christine Challier & Mohamed Jellal, 1992. "Analyses du chômage de longue durée et du chômage récurrent le cas de la France," Économie et Prévision, Programme National Persée, vol. 105(4), pages 55-72.
    2. Alan L. Gustman & Thomas L. Steinmeier, 1979. "The Impact of the Market and the Family on Youth Employment and Labor Supply," NBER Working Papers 0415, National Bureau of Economic Research, Inc.

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