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Quel loisir pour les allocataires du RMI ? L'arbitrage consommation/loisir revisité

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Listed:
  • Muriel Pucci

    (DREES)

  • Hélène Zajdela

    (MATISSE et Université d'Evry-Val d'Essonne)

Abstract

In this paper, we build a renewed labour supply model in order to explain why the RMI recipients don't «fall in poverty traps» but on the contrary accept to work even for low wages. The standard consumption-leisure trade-off is extended: we consider that one needs a minimum consumption level that the non-working time can be either leisure time or to idle time. In the standard labour supply model, leisure which enters in the utility function is implicitly defined as the non-working time. This is regrettable since this period of time is not entirely dedicated to pleasant activities. One can «do nothing»: this «non activity» can be modelled as an inferior good. In this "consumption-leisure-idle time" trade-off, labour supply depends on how much the worker can consume over the survival level and on what he does during non-working time. RMI recipients' consumption is close to the survival level and they have not much to spend on leisure: labour supply is inelastic to wage and there are no traps

Suggested Citation

  • Muriel Pucci & Hélène Zajdela, 2004. "Quel loisir pour les allocataires du RMI ? L'arbitrage consommation/loisir revisité," Cahiers de la Maison des Sciences Economiques r04106, Université Panthéon-Sorbonne (Paris 1).
    • Handle: RePEc:mse:wpsorb:r04106
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    References listed on IDEAS

    as
    1. Bernard Gazier & Hélène Zajdela, 2006. ""Making work pay": from justifications to implementations," Cahiers de la Maison des Sciences Economiques r06073, Université Panthéon-Sorbonne (Paris 1).
    2. Danièle Guillemot & Patrick Pétour & Hélène Zajdela, 2002. "Trappe à chômage ou trappe à pauvreté. Quel est le sort des allocataires du RMI ?," Revue économique, Presses de Sciences-Po, vol. 53(6), pages 1235-1252.
    3. repec:adr:anecst:y:2001:i:63-64:p:01 is not listed on IDEAS
    4. Thomas Piketty, 1998. "L'impact des incitations financières au travail sur les comportements individuels : une estimation pour le cas français," Économie et Prévision, Programme National Persée, vol. 132(1), pages 1-35.
    5. Marc Gurgand & David Margolis, 2001. "RMI et revenus du travail : une évaluation des gains financiers à l'emploi," Économie et Statistique, Programme National Persée, vol. 346(1), pages 103-122.
    6. François Bourguignon, 2001. "Revenu minimum et redistribution optimale des revenus : fondements théoriques," Économie et Statistique, Programme National Persée, vol. 346(1), pages 187-204.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Unemployment and poverty traps; consumption/leisure trade-off; RMI;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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