2012
DOI: 10.1111/j.1467-9442.2012.01717.x
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Labour Supply, Life Satisfaction, and the (Dis)Utility of Work*

Abstract: In economic theory, it is typically assumed that there is a “disutility of labour”. However, empirical research on subjective well‐being has consistently shown that unemployed people are less happy than employed people, even after taking income differences into account. In this paper, we attempt to reconcile both findings. We show that happiness and work hours exhibit an inverse U‐shaped relation – working longer raises the level of happiness, as long as the total working time is not too long. Hence, working c… Show more

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Cited by 37 publications
(35 citation statements)
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“…Já no âmbito da economia, os estudos da recente Economia da Felicidade oferecem uma evolução dos conceitos originais da utilidade do trabalho, indo além da retribuição financeira (Frey & Stutzer, 2002;Graham, 2005;Rätzel, 2012;Spencer, 2014).…”
Section: Indivíduounclassified
“…Já no âmbito da economia, os estudos da recente Economia da Felicidade oferecem uma evolução dos conceitos originais da utilidade do trabalho, indo além da retribuição financeira (Frey & Stutzer, 2002;Graham, 2005;Rätzel, 2012;Spencer, 2014).…”
Section: Indivíduounclassified
“…However, Rätzel (2011) shows that working hours have an inverse U-shaped impact on life satisfaction such that they reduce life satisfaction at the margin, but not necessarily in total. Hence, the substantial gain in leisure when retiring does not have to cause an increase in life satisfaction.…”
Section: Descriptive Statisticsmentioning
confidence: 99%
“…These partial correlation coefficients can be affected by economic shocks such as the Lehman shock. Analyses using the labor economic model, which allows for non‐pecuniary work motivation such as the overall job satisfaction, are indicated as necessary by Akerlof and Kranton (), Farzin (), and Rätzel (). However, further analysis of the relationships between overall job satisfaction and the specific job aspects related to job satisfaction, such as ‘motivation to work’ (work1), … , ‘work–life balance’ (work9), is required.…”
Section: Empirical Analysis Of Job Satisfactionmentioning
confidence: 99%
“…For example, Farzin (2009) suggests that work results in overall job satisfaction because of its social and psychological benefits and constructs a labor economic model that allows for non-pecuniary work motivation. 1 Rätzel (2012) suggests that 'increasing working hours are associated with higher individual life satisfaction levels' and that 'employment and working time increase happiness.' 2 Working provides people with not only pecuniary compensation for its disutility but also a sense of fulfillment at work and of enhancement of their capability.…”
Section: Introductionmentioning
confidence: 99%