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Straight-time and Overtime: A Sequential-Lottery Approach

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  • Vasilev, Aleksandar

Abstract

This note explores the problem of aggregation with non-convex labor supply decisions in an economy with both straight time and overtime. In contrast to Hansen and Sargent (1988), the paper models this as a sequential decision. Instead of changing from one to infinity, with a sequential non-convexity, the aggregate elasticity of labor supply for overtime work is a function of overall participation rate, and the aggregate elasticity of labor supply for full-time work depends on the share of workers doing overtime.

Suggested Citation

  • Vasilev, Aleksandar, 2015. "Straight-time and Overtime: A Sequential-Lottery Approach," EconStor Preprints 142243, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:142243
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    File URL: https://www.econstor.eu/bitstream/10419/142243/1/overtime_lotteries_TPREF.pdf
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    References listed on IDEAS

    as
    1. Hansen, Gary D. & Sargent, Thomas J., 1988. "Straight time and overtime in equilibrium," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 281-308.
    2. Rogerson, Richard, 1988. "Indivisible labor, lotteries and equilibrium," Journal of Monetary Economics, Elsevier, vol. 21(1), pages 3-16, January.
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    Cited by:

    1. Aleksander VASILEV, 2018. "Insurance markets Equilibrium with Sequential Non convex Straight time and Over time Labor Supply," Journal of Mathematical Economics and Finance, ASERS Publishing, vol. 4(2), pages 7-26.
    2. Aleksandar VASILEV, 2017. "Aggregation With Sequential Indivisible And Continuous Labor Supply Decisions And An Informal Sector," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 8(2), pages 144-148.
    3. Vasilev, Aleksandar, 2017. "Insurance-markets Equilibrium with Sequential Non-convex Private- and Public-Sector Labor Supply," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 2(2), pages 19-34.

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    More about this item

    Keywords

    straight time; overtime; indivisible labor; sequential lottery;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical

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