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A Theory of the Production and Allocation of Effort

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  • Gary S. Becker

Abstract

The purpose of this paper is to analyze systematically the production of effort and its allocation among different market and non-market sectors. I believe that this analysis can explain much of the variation in earnings that is not explained by human capital. The first section introduces the material. The next section develops the basic theoretical analysis of the production and allocation of effort by a free person. Section III applies this analysis to the value placed on time a1 located to the non-market sector, the effect of hours worked on fatigue and earnings, life cycle variations-in earnings and hours worked, investment in health, and the effect of marriage on the earnings and health of men and women. Section IV considers worker effort from the view point of firms, and shows how various characteristics of firms determine the wage rates offered and the effort supplied by their workers. Section V analyzes the production and allocation of effort by slaves, and derives "expropriation rates'' and other implications about the treatment of slaves .

Suggested Citation

  • Gary S. Becker, 1977. "A Theory of the Production and Allocation of Effort," NBER Working Papers 0184, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:0184
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    Cited by:

    1. Akogun, Oladele & Dillon, Andrew & Friedman, Jed & Prasann, Ashesh & Serneels, Pieter, 2017. "Productivity and Health: Alternative Productivity Measures using Physical Activity," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258380, Agricultural and Applied Economics Association.
    2. Akogun, Oladele & Dillon, Andrew & Friedman, Jed & Prasann, Ashesh & Serneels, Pieter, 2017. "Productivity and Health: Alternative Productivity Estimates Using Physical Activity," IZA Discussion Papers 11115, Institute of Labor Economics (IZA).
    3. Jed Friedman & Isis Gaddis & Talip Kilic & Antonio Martuscelli & Amparo Palacios-Lopez & Alberto Zezza, 2023. "The Distribution of Effort: Physical Activity, Gender Roles, and Bargaining Power in an Agrarian Setting," The World Bank Economic Review, World Bank, vol. 37(1), pages 93-111.
    4. Zsolt Becsi, 2001. "Longevity and the Life Cycle," Departmental Working Papers 2001-12, Department of Economics, Louisiana State University.

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