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Habit Formation, Work Ethics, and Technological Progress

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  • Joao Ricardo Faria
  • Miguel A. Leon-Ledesma

    ()

Abstract

Work ethics affects labor supply. This idea is modeled assuming that work is habit forming. This paper introduces working habits in a neoclassical growth model and compares its outcomes with a model without habit formation. In addition, it analyzes the impact of different forms of technical progress. The findings are that i) labor supply in the habit formation case is higher than in the neoclassical case; ii) unlike in the neoclassical case, labor supply in the presence of habit formation will depend on the kind of technical progress experienced by the economy and iii) the kind of technical progress will hence affect the steady state levels of consumption, capital stock and output.

Suggested Citation

  • Joao Ricardo Faria & Miguel A. Leon-Ledesma, 2002. "Habit Formation, Work Ethics, and Technological Progress," Studies in Economics 0210, School of Economics, University of Kent.
  • Handle: RePEc:ukc:ukcedp:0210
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    References listed on IDEAS

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    1. Idson, Todd L & Robins, Philip K, 1991. "Determinants of Voluntary Overtime Decisions," Economic Inquiry, Western Economic Association International, vol. 29(1), pages 79-91, January.
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    3. Kubin, Ingrid & Prinz, Aloys, 2002. "Labour supply with habit formation," Economics Letters, Elsevier, vol. 75(1), pages 75-79, March.
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    9. Blum, U. & Dudley, L., 2001. "Religion and Economic Growth: Was Weber Right?," Cahiers de recherche 2001-05, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
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    13. Faria, Joao Ricardo, 2001. "Habit formation in a monetary growth model," Economics Letters, Elsevier, vol. 73(1), pages 51-55, October.
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    Cited by:

    1. repec:hal:journl:halshs-00344793 is not listed on IDEAS
    2. Vladimir Kühl Teles & Joaquim P. Andrade, 2005. "Crime And Punishment With Habit Formation," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 090, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. Paul Levine & Peter McAdam & Peter Welz, 2013. "On Habit and the Socially Efficient Level of Consumption and Work Effort," School of Economics Discussion Papers 0713, School of Economics, University of Surrey.
    4. Forson, Joseph Ato & Janrattanagul, Jakkaphong & Carsamer, Emmanuel Carsamer, 2013. "Culture Matters: A Test of Rationality on Economic Growth," MPRA Paper 56825, University Library of Munich, Germany.
    5. Bonatti, Luigi, 2008. "Evolution of preferences and cross-country differences in time devoted to market work," Labour Economics, Elsevier, vol. 15(6), pages 1341-1365, December.
    6. Ali Choudhary & Paul Levine, 2006. "The 24/7 Society and Multiple Habits," School of Economics Discussion Papers 0506, School of Economics, University of Surrey.
    7. Dan Wheatley & Irene Hardill & Bruce Philp, 2008. "Managing reductions in working hours: a study of work-time and leisure preferences in UK industry," Working Papers 2008/5, Nottingham Trent University, Nottingham Business School, Economics Division.
    8. João Ricardo Faria & Gonçalo Monteiro, "undated". "The Tenure Game: Building Up Academic Habits," Discussion Papers 05/32, Department of Economics, University of York.

    More about this item

    Keywords

    labour supply; habit formation; work ethics; technological progress;

    JEL classification:

    • D99 - Microeconomics - - Micro-Based Behavioral Economics - - - Other
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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