Hours and Weeks in the Theory of Labor Supply

Giora Hanoch

ResearchPublished 1976

Presents a theoretical model of labor supply, emphasizing its multidimensional features, such as the joint determination of hours and weeks of work. Assuming two types of leisure commodities — leisure during workweeks and leisure during nonworkweeks — induces a simultaneous two-equation model of labor supply, with numerous empirical and theoretical implications. The basic model is modified and extended in several ways, introducing fixed weekly time and money costs of work, corner solutions (full-year work) or partial restrictions, joint determination of supply in a two-earner family, and additional dimensions, such as days per week. Diagrams and numerical examples, based on the Cobb-Douglas utility function, demonstrate many of the results. Empirical implications of the theoretical model are discussed briefly throughout the study. (See also R-1869.)

Document Details

  • Copyright: RAND Corporation
  • Availability: Web Only
  • Year: 1976
  • Pages: 61
  • Document Number: R-1787-HEW

Citation

Chicago Manual of Style

Hanoch, Giora, Hours and Weeks in the Theory of Labor Supply. Santa Monica, CA: RAND Corporation, 1976. https://www.rand.org/pubs/reports/R1787.html.
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