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A Note on Social Norms and Transfers

Author

Listed:
  • Sundén, David

    (Research Institute of Industrial Economics (IFN))

  • Weibull, Jörgen W.

    (Research Institute of Industrial Economics (IFN))

Abstract

This note elaborates an extension of the paper "Social Norms, the Welfare State, and Voting" by Lindbeck, Nyberg, and Weibull [1]. That paper studies the effects of a social norm against living off others work. In the welfare-state context of their model, this means that individuals who live on public transfers experience disutility. One limitation in the model is that the individual's choice is binary: either to work full time or not at all. Here we allow individuals to choose working hours on a continuous scale. We derive a fixed-point equation that determines all individuals number of work hours, and show that the limitation to a binary choice is not binding if individuals have Cobb-Douglas preferences and no non-labor incomes.

Suggested Citation

  • Sundén, David & Weibull, Jörgen W., 1997. "A Note on Social Norms and Transfers," Working Paper Series 478, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0478
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    Cited by:

    1. Assar Lindbeck & Sten Nyberg & Jörgen W. Weibull, 1999. "Social Norms and Economic Incentives in the Welfare State," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 1-35.

    More about this item

    Keywords

    Sociology; Labour Market;

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics

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