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Ch3_Labor Demand 鲍哈斯劳动经济学
Last Week
Labor Supply
2
飩 Employed, Unemployed, Out of Labor Force
飩 Labor Force Participation Rate
飩 Employment Rate
飩 Unemployment Rate
Labor Supply
3
飩 Labor-leisure model
飩 Utility function, indifference curve, budget constraint
飩 Intensive margin: hours of work decision
飩 Change in nonlabor income, wage
飩 Income effect, substitution effect
飩 Extensive margin: whether to work decision
飩 Reservation wage
飩 Labor supply curve
飩 Labor supply elasticity
Review Question (#2-6)
4
Shlley鈥檚 preferences for consumption and leisure:
肀 戆? 戆 = 戆 鈭 200 脳 戆 鈭 80
There are 168 hours in the week available to split between work and leisure.
Shelly earns $5 per hour after taxes. She also has $320 worth of nonlabor
income each week.
Find Shelly鈥檚 optimal amount of (C,L) and her reservation wage.
1. Graph budget line.
2. Find 肀€肀堩翱 and 肀€肀堭€€ .
3. Use tangency condition 肀€肀呿眴 = 饊仱.
Labor Supply
5
飩 Labor Supply of Women
飩 Policy Applications
飩 Cash Grants
飩 EITC
Labor Supply
6
飩 Labor Supply Over the Life Cycle
飩 Evolutionary wage change
飩 Labor Supply Over the Business Cycle
飩 Added worker effect
飩 Discouraged worker effect
Review Question (#2-9)
7
Consider two workers with identical preferences, Phil and Bill. Both workers
have the same life cycle wage path in that they face the same wage at every
age, and they know what their future wages will be. Leisure and consumption
are both normal goods.
(a) Compare the life cycle path of hours of work between the two workers if
Bill receives a one-time, unexpected inheritance at the age of
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