Thursday, April 02, 2009

Basic Labor Supply Model

One of the questions we will focus on next week is: how many hours to people choose to work?

The main model economists use to explain this decision is the neoclassical labor supply model. This model explains the decision to work as a tradeoff between labor (working for pay ) and leisure (all time spent not working for pay).

In order to augment our discussion in class, you can find additional materials on this topic in a number of places. First, many intermediate micro texts contain a discussion of this model (so you may want to check the books on your shelf or in the library). Alternatively, there are a number of discussions available online. E.g., here, here, and here.

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