Job Satisfaction and Elasticity of Labor Supply

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?






One response to “Job Satisfaction and Elasticity of Labor Supply”

  1. Mike Kimel Avatar

    Ah… but imagine the counterargument from certain circles…. high paying jobs have less job satisfaction, else they wouldn’t require high pay. Or something.