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Schizophrénie intergénérationnelle

Author

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  • Bruno Decreuse

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Bertrand Wigniolle

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Love pushed beyond its paroxysm leads to suffocation. That is the moral of this article, which depicts an altruistic parent setting her labour supply to offer the best living conditions to her child. When parents and children are perfectly substituable in production, this behaviour pushes all wages down. If hourly wages are rigid, employment is rationed and the youth are the primary victims of such rationing. We show this mechanism may originate endogenous fluctuations between under and full employment when the older workers' productivity negatively responds to past unemployment. We also analyse the political support for the minimum wage. When the youth productivity is random, the minimum wage, the older workers' labour supply and youth unemployment together rise with the intensity of parental altruism.

Suggested Citation

  • Bruno Decreuse & Bertrand Wigniolle, 2006. "Schizophrénie intergénérationnelle," Post-Print halshs-00185314, HAL.
    • Handle: RePEc:hal:journl:halshs-00185314
    DOI: 10.3917/rel.721.0049
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00185314
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    More about this item

    Keywords

    OLG model; Altruism; Endogenous labour supply; Unemployment; Générations imbriquées; Altruisme; Offre de travail endogène; Chômage;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • 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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