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Backward-bending of labor supply function and free riders

Author

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  • Yoshino, Hisao

Abstract

It seems like that backward- bending of labor supply function can be observed in Central Asian Countries such as Uzbekistan and Kazakhstan. People’s basic needs of life are satisfied and they do not increase labor supplies even if wage increases. It is possible to find some cases in which slowdowns increase, when a manager in a firm enforces penalties for workers have slowdowns. This phenomenon occurs because a worker prefers the position of equilibrium on the labor supply function always in the upper direction. This article explains the increase of free-riders by penalties and how to avoid them.

Suggested Citation

  • Yoshino, Hisao, 2012. "Backward-bending of labor supply function and free riders," IDE Discussion Papers 350, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper350
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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=37824&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2012
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    More about this item

    Keywords

    Central Asia; Labor problems; Labor market; Backward- bending; Labor Supply Function; Free Riders;

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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