6533b7d1fe1ef96bd125d771

RESEARCH PRODUCT

Work Intensity and Labour Supply

Jean Roch Donsimoni

subject

Consumption (economics)Labour economicsWork (electrical)business.industryLabour supplyHealth careWork IntensitybusinessTertiary sector of the economyMental health

description

AbstractWe develop a model where individuals accumulate fatigue from work intensity when choosing hours worked. Fatigue captures intertemporal costs of labour supply and leads to a utility loss. As fatigue increases, individuals optimally choose to work fewer hours. The model also predicts that if individuals cannot easily shift consumption over time, they will work fewer hours but accumulate more fatigue when work intensity increases. Calibration to 19 European countries provides evidence for the claim that a higher share of the service sector is linked to increasing work fatigue and that public provisions of healthcare improves recovery and mental health.JEL codesE71, I12, J22

https://doi.org/10.1101/2020.03.27.20041335