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Beware of Workaholics: Household Preferences and Individual Equilibrium Utility

Author

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  • Gersbach, Hans

    (ETH Zurich)

  • Haller, Hans

    (Virginia Tech)

Abstract

This paper analyzes the effects of sociological changes in the form of a shift of influence within two-member households participating in labor and product markets. The most striking effects occur when household members differ in individual preferences and enjoy positive leisure-dependent externalities. For instance, a global sociological change where the “workaholic" member becomes more influential in each working class household can render the working class worse off. A binding restriction on the number of hours an individual is allowed to work can benefit all workers.

Suggested Citation

  • Gersbach, Hans & Haller, Hans, 2005. "Beware of Workaholics: Household Preferences and Individual Equilibrium Utility," IZA Discussion Papers 1502, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1502
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    References listed on IDEAS

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    Cited by:

    1. Pierre Cahuc & André Zylberberg, 2008. "Reduction of working time and unemployment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00255770, HAL.

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    More about this item

    Keywords

    externalities; general equilibrium; household behavior; labor supply;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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