2劳动经济学

NextpageCopyright©2008byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/IrwinChapter2TheTheoryofIndividualLaborSupplyJumptofirstpage2-21.TheWork-LeisureDecision:BasicModelJumptofirstpage2-3Individualschoosebetweenworkandleisure.Workistimespentonapayingjob.Leisureincludesactivitieswhereoneisnotpaid.EducationRestWorkwithinthehouseholdAssumptionsJumptofirstpage2-4IndifferenceCurveLeisureHrIncome/day240•Theindifferencecurveshowsworkandleisurecombinationsthatyieldthesameamountoftotalutility.•Morehoursofleisureimpliesfewerhoursofwork.240WorkHrJumptofirstpage2-5NegativeslopeTokeepthelevelofutilitythesame,ifonegetmoreleisure,someofincomemustbegivenup.ConvextooriginWithlowhoursofleisure,individualsarewillingtogiveupalargeamountofincometoget1moreleisurehour.Withhighhoursofleisure,individualsarewillingtogiveupasmallamountofincometoget1moreleisurehour.IndifferenceCurvePropertiesJumptofirstpage2-6MarginalRateofSubstitutionLeisureIncome/day349824041•Themarginalrateofsubstitution(MRS)istheamountofincomeonemustgiveuptocompensatefor1morehourifleisure.•At3hoursofleisure(21hoursofwork),onemustgiveup4unitsofincometocompensatefor1morehourofleisure.240Work•At8hoursofleisure(16hoursofwork),onemustgiveup1unitofincometocompensatefor1morehourofleisure.•TheMRSfallsasonemovessoutheastalonganindifferencecurve.Jumptofirstpage2-7IndifferenceMapLeisureIncome/day240•Curvesfurtherfromtheoriginindicatehigherutility.I1I2I3L2L1Y2Y1•CombinationL2Y2ispreferredtocombinationL1Y1sinceonegetsbothmoreincomeandmoreleisure.•Apersonwillmaximizeutilitybygettingtothehighestattainableindifferencecurve.Jumptofirstpage2-8Work-LeisurePreferencesLeisureIncome/day240•“Leisurelovers”placeahighvalueonleisure.Thehaveasteepindifferencecurve.Theyarewillingtosacrificealargeamountofincometogetasmallincreaseinleisure.I1I2•“Workaholics”placealowvalueonleisure.Thehaveaflatindifferencecurve.Theymustbegivenalargeincreaseinleisuretocompensateforasmalldecreaseinincome.IAIBJumptofirstpage2-9BudgetConstraintLeisureIncome/day240•Thebudgetconstraintshowsthecombinationsofincomeandleisurethataworkercouldgetgivenawagerate.$120•Atawagerateof$5,aworkercouldgetamaximumincomeof$120perday($5/hour*24).•Atawagerateof$10,aworkercouldgetamaximumincomeof$240perday.•Atawagerateof$15,aworkercouldgetamaximumincomeof$360perday.$240$360•Theslopeofthebudgetconstraintis–wagerate.Jumptofirstpage2-10UtilityMaximizationLeisureIncome/day240•Theoptimalorutilitymaximizingpointiswherethebudgetconstraintistangenttothehighestattainableindifferencecurve(U).$240I1I2I316$80U•AtU,theMRS(slopeoftheindifferencecurve)istheequaltothewagerate(slopeofthebudgetconstraint)•AtB,theMRSisgreaterthanthewagerate.Theindividualvaluesleisuremorethanthewagerate.BA•AtA,theMRSislessthanthewagerate.Theindividualvaluesleisurelessthanthewagerate.Jumptofirstpage2-11BackwardBendingLaborSupplyCurveHoursofWorkWageRate240•Foragivenperson,hoursofworkmayincreaseasthewageraterises.810$10$25•Ifthewageraterisesfrom$10to$25perhourhoursofworkrisesfrom8to10hoursperday.•Above$25perhour,hoursofworkfall.SL•Thebackwardbendinglaborsupplycurveistheresultoftheincomeandsubstitutioneffectsofawagechange.Jumptofirstpage2-12IncomeEffectThechangeindesiredhoursofworkresultingfromachangeinincome,holdingthewageconstant.Leisureisanormalgood,sohigherincomeimpliesadesireformoreleisure(fewerhoursofwork).Forawageincrease,incomeisraisedandsotheincomeeffectlowersdesiredworkhours.IncomeEffectJumptofirstpage2-13SubstitutionEffectThechangeindesiredhoursofworkresultingfromachangeinthewagerate,holdingincomeconstant.Ahigherwagerateraisestherelativepriceofleisure.Forawageincrease,thesubstitutioneffectraisesdesiredworkhours.SubstitutionEffectJumptofirstpage2-14ForWageIncreasesIfsubstitutioneffectincomeeffect,thenhoursofworkrise.Ifincomeeffectsubstitutioneffect,thenhoursofworkfall.ForWageDecreasesIfsubstitutioneffectincomeeffect,thenhoursofworkfall.Ifincomeeffectsubstitutioneffect,thenhoursofworkrise.NetEffectJumptofirstpage2-15IncomeandSubstitutionEffectsLeisureIncome/day240•Atawagerateof$10/hour,theoptimalhoursofleisureis16(8hoursofwork)atpointU1.$240I1I216U1•Ifthewageraterisesto$15/hour,theoptimalhoursofleisureis15atpointU2.•Theincomeeffect(IE)ismeasuredthroughaparallelshiftoftheoldbudgetconstraint.TheIEisfromU1toU2’(from16to17hoursofleisure).•Thesubstitutioneffect(SE)ismeasuredbymovementalongI2.TheSEisfromU2’toU2(from17to15hoursofleisure).1715U2U2’$360•Theneteffectisanincreaseofhoursofworkby1hour.Jumptofirstpage2-16Thesubstitutioneffectdominatesatlowwagerates.TheMRSislowbecauseincomeisscarcerelativetoleisure.TheincomeeffectdominatesathigherwageratesTheMRSishighbecauseleisureisscarcerelativetoincome.BackwardBendingLaborSupplyRationaleJumptofirstpage2-17Thelaborsupplycurveisslightlybackwardbendingformen.Theincomeeffectisslightlygreaterthanthesubstitutioneffect.Thelaborsupplycurveispositiveforwomen.Ifsubstitutioneffectisgreaterthantheincomeeffect.Womensubstitutebetweenworkathomeandmarketworkmorethanmen.EmpiricalEvidenceJumptofir