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Competing to belong and working to pay for it: a socioeconomic model of the link between productivity and work-life balance

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  • Dimitry Rtischev

    (Gakushuin University)

Abstract

I model and simulate an increasingly productive labor economy in which heterogeneous agents choose how much to work, how much to consume, and where to belong. The agents like to belong to “clubs” (e.g., neighborhoods, schools, workplaces) which are formed, quality-ranked, and priced endogenously. I examine the effect of productivity gains, paid out either through wage hikes or universal income grants, on club prices, leisure time, and consumption. I find that income grants are more prone than wage hikes to be dissipated in the bidding to join the “better” clubs. The findings imply that socioeconomic competition channeled through market institutions may hinder the translation of productivity growth into better work-life balance.

Suggested Citation

  • Dimitry Rtischev, 2020. "Competing to belong and working to pay for it: a socioeconomic model of the link between productivity and work-life balance," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(4), pages 533-548, December.
    • Handle: RePEc:spr:inrvec:v:67:y:2020:i:4:d:10.1007_s12232-020-00357-7
    DOI: 10.1007/s12232-020-00357-7
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    References listed on IDEAS

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    1. Frank, Robert H, 1985. "The Demand for Unobservable and Other Nonpositional Goods," American Economic Review, American Economic Association, vol. 75(1), pages 101-116, March.
    2. Dimitry Rtischev, 2018. "Labor-Leisure Choice and Relative Income Concerns in the Shadow of the Housing Market," Journal of Economic Issues, Taylor & Francis Journals, vol. 52(3), pages 869-890, July.
    3. Gauvin, Laetitia & Vignes, Annick & Nadal, Jean-Pierre, 2013. "Modeling urban housing market dynamics: Can the socio-spatial segregation preserve some social diversity?," Journal of Economic Dynamics and Control, Elsevier, vol. 37(7), pages 1300-1321.
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    More about this item

    Keywords

    Socioeconomic competition; Working time; Leisure; Universal basic income; Clubs; Work-life balance;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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