Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142243
Authors: 
Vasilev, Aleksandar
Year of Publication: 
2015
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.
Subjects: 
straight time
overtime
indivisible labor
sequential lottery
JEL: 
J2
E13
Document Type: 
Preprint

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