ocial Status and the Overworked Consumer

A policy restricting working hours may be justified if agents care about their social status, as the race for status induces them to work too much. We show that this intuition is questionable if the commitment capacity of the government is limited: status seeking does press people to supply excessive labor relative to the social optimum, yet the time consistent policy of a government controlling working hours implies a shortage of hours.

MoreLess

Year of publication:	2005
Authors:	CAHUC, Pierre ; POSTEL-VINAY, Fabien
Published in:	Annales d'Economie et de Statistique. - École Nationale de la Statistique et de l'Admnistration Économique (ENSAE). - 2005, 78, p. 143-161
Publisher:	École Nationale de la Statistique et de l'Admnistration Économique (ENSAE)

More details

Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005065984