Desired work-leisure balance in a partial equilibrium job search model with multiple job holding

Simon Ming Sum Lo

doi:10.2478/izajole-2023-0006

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Desired work-leisure balance in a partial equilibrium job search model with multiple job holding

IZA Journal of Labor Economics

Volume 12 (2023): Issue 1 (January 2023)

By: Simon Ming Sum Lo

Open Access

|Dec 2023

Abstract

Work-leisure balances are beneficial to society. A partial equilibrium job search model is developed to explain desired work-leisure tradeoffs for single-job holders and multiple-job holders. Significant work-leisure mismatches are found: 63% of the observations underwork by an average of 17 hours per week, while 37% overwork by 8.5 hours. The value of leisure is approximately four times the average hourly real wage when a single job is held, and it drops by one-third when multiple jobs are held. Models ignoring possibilities of multiple jobholding overstate the elasticity of leisure and understate the value of leisure.

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