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?

  1. November 30th, 2011 at 08:20 | #1

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

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