Job satisfaction, time allocation and labour supply
Dipartimento di Economia e Giurisprudenza, Università degli Studi di Cassino e del Lazio Meridionale
Abstract: This paper reinterprets the neoclassical theory of labour supply by introducing job satisfaction into the utility function of the worker. This integration is feasible and also straightforward from a theoretical point of view and, furthermore, it produces interesting results. Precisely, this extended version of the standard model of labour supply can describe situations in which working produces utility beyond consumption, with the result that the disutility of giving up leisure time is lowered or even reversed. As a result, the paper is able to reconcile the standard theory of labour supply with the well-established finding of happiness research, according to which working could yield substantial non-monetary benefits.
JEL codes: J28; J22; J24
Keywords: job satisfaction, time allocation, leisure, labour supply