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Individual and Aggregate Labor Supply With Coordinated Working Times

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  • Richard Rogerson

Abstract

I analyze two extensions to the standard model of life cycle labor supply that feature operative choices along both the intensive and extensive margin. The first assumes that individuals face different continuous wage-hours schedules. The second assumes that all work must be coordinated across individuals. These models look similar qualitatively but have very different implications for how aggregate labor supply responds to changes in taxes. In the first model, curvature in the utility from leisure function plays relatively little role in determining the overall change in hours worked, whereas in the second model it is of first order importance. The second model has important implications for what data is best able to provide evidence on the extent of curvature in the utility from leisure function.

Suggested Citation

  • Richard Rogerson, 2010. "Individual and Aggregate Labor Supply With Coordinated Working Times," NBER Working Papers 16636, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:16636
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    References listed on IDEAS

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    Cited by:

    1. Françoise Delmez & Vincent Vandenberghe, 2017. "Working long hours: less productive but less costly? Firm-level evidence from Belgium," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2017022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    2. Yurdagul, Emircan, 2017. "Production complementarities and flexibility in a model of entrepreneurship," Journal of Monetary Economics, Elsevier, vol. 86(C), pages 36-51.
    3. Ryan Michaels & Michele Battisti, 2013. "Coordinated labor Supply within the Firm: Evidence and Implications," 2013 Meeting Papers 1116, Society for Economic Dynamics.
    4. Philippe Choné & Guy Laroque, 2014. "Income tax and retirement schemes," Working Papers hal-01070554, HAL.
    5. Michele Battisti & Ryan Michaels & Choonsung Park, 2016. "Labor supply within the firm," ifo Working Paper Series 222, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    6. Michael Keane & Richard Rogerson, 2012. "Micro and Macro Labor Supply Elasticities: A Reassessment of Conventional Wisdom," Journal of Economic Literature, American Economic Association, vol. 50(2), pages 464-476, June.

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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