| Reference : Technological Progress, the Supply of Hours Worked, and the Consumption-Leisure Compl... |
| Diverse speeches and writings : Speeches/Talks | |||
| Business & economic sciences : Macroeconomics & monetary economics | |||
| http://hdl.handle.net/10993/34834 | |||
| Technological Progress, the Supply of Hours Worked, and the Consumption-Leisure Complementarity | |
| English | |
Irmen, Andreas  [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >] | |
| 2017 | |
| International | |
| 1st CEREC Workshop on Macroeconomics and Growth, University Saint-Louis, Brussels | |
| November 2017 | |
| University Saint-Louis | |
| Brussels | |
| Belgium | |
| [en] Technological Change ; Capital Accumulation ; Endogenous Labor Supply ; OLG-model | |
| [en] At least since 1870 hours worked per worker declined and real wages increased
in many of today’s industrialized countries. The dual nature of technological progress in conjunction with a consumption-leisure complementarity explains these stylized facts. Technological progress drives real wages up and expands the amount of available con- sumption goods. Enjoying consumption goods increases the value of leisure. Therefore, individuals demand more leisure and supply less labor. This mechanism appears in an OLG-model with two-period lived individuals equipped with per-period utility func- tions of the generalized log-log type proposed by Boppart-Krusell (2016). The optimal plan is piecewise defined and hinges on the wage level. Technological progress moves a poor economy out of a regime with low wages and an inelastic supply of hours worked into a regime where wages increase further and hours worked continuously decline. | |
| Researchers ; Students | |
| http://hdl.handle.net/10993/34834 |
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