Job Satisfaction and Elasticity of Labor Supply
November 25th, 2011
Thinking more about Steedman’s point, that how much people (don’t) enjoy their work has a massive effect on their “utility” and welfare, I wonder this:
Wouldn’t the market for higher-end jobs — which tend to deliver more job satisfaction, hence utility, hence welfare — display much lower elasticity of supply?
In other words, wouldn’t changes in salaries (or taxes on those salaries) have much less effect on workers in those high-end jobs than on workers in shitty jobs?
Do any of the supposedly micro-based DSGE models — or any economic models that you know of — incorporate this effect?
Ah… but imagine the counterargument from certain circles…. high paying jobs have less job satisfaction, else they wouldn’t require high pay. Or something.