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

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.

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Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number r04106.

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Length: 22 pages
Date of creation: Sep 2004
Date of revision:
Handle: RePEc:mse:wpsorb:r04106
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  1. Danièle Guillemot & Patrick Pétour & Hélène Zajdela, 2002. "Trappe à chômage ou trappe à pauvreté. Quel est le sort des allocataires du RMI ?," Revue Économique, Programme National Persée, vol. 53(6), pages 1235-1252.
  2. Bernard Gazier & Hélène Zajdela, 2006. ""Making work pay" : from justifications to implementations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00119155, HAL.
  3. 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.
  4. François Bourguignon, 2001. "Revenu minimum et redistribution optimale des revenus : fondements théoriques," Économie et Statistique, Programme National Persée, vol. 346(1), pages 187-204.
  5. Gurgand, M. & Margolis, D., 2001. "RMI et revenus du travail : une evaluation des gains financiers a l'emploi," Dossiers de recherche- 09, Centre d'etudes de l'emploi.
  6. Pierre CAHUC & Hubert KEMPF & Thierry VERDIER, 2001. "Intéractions sociales et comportements économiques / Social Behavior and Economic Behavior," Annals of Economics and Statistics, GENES, issue 63-64, pages 1-19.
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