Non-pecuniary Value of Employment and Individual Labor Supply
Date
01.01.2004
01.01.2004
Authors
Y. Hossein Farzin, Ken-Ichi Akao
JEL Code
D62,J22,I31
D62,J22,I31
Keywords:
Non-pecuniary effects,Employment value,Labor supply
Non-pecuniary effects,Employment value,Labor supply
Publisher
Economy and Society
Economy and Society
Editor
Gianmarco I.P. Ottaviano
Gianmarco I.P. Ottaviano
Recognizing that people value employment not only to earn income to satisfy their consumption needs but also as a means of community involvement that provides socio-psychological (non-pecuniary) benefits, we show that once the non-pecuniary benefits of employment are incorporated in the standard individual’s utility function, then at very low income levels employment can be a source of utility, inducing individuals to supply labor to the extent possible. We also show the conditions under which a greater non-pecuniary effect of employment generates a larger individual labor supply.