Habit formation, work ethics and technological progress

Work ethics affect labour supply. This idea is modelled assuming that work is habit forming. We introduce working habits in a neoclassical growth model and compare its outcomes with a model without habit formation. In addition, we analyse the impact of different forms of technical progress. The find...

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Published in:The Manchester school 2004-06, Vol.72 (3), p.403-413
Main Authors: Faria, João Ricardo, León-Ledesma, Miguel A.
Format: Article
Language:English
Subjects:
Capital
Consumption
Economic theory
Economics
Employment
Ethics
Growth models
Habits
Labor market
Labor supply
Labour supply
Studies
Technological change
Technology
Work ethic
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description Work ethics affect labour supply. This idea is modelled assuming that work is habit forming. We introduce working habits in a neoclassical growth model and compare its outcomes with a model without habit formation. In addition, we analyse the impact of different forms of technical progress. The findings are that (i) labour supply in the habit formation case is higher than in the neoclassical case; (ii) unlike in the neoclassical case, labour supply in the presence of habit formation depends on the kind of technical progress; and (iii) the kind of technical progress will hence affect the steady‐state levels of consumption, capital stock and output.
doi_str_mv 10.1111/j.1467-9957.2004.00399.x
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source International Bibliography of the Social Sciences (IBSS); Business Source Ultimate; EconLit with Full Text; Wiley-Blackwell Read & Publish Collection
subjects Capital
Consumption
Economic theory
Economics
Employment
Ethics
Growth models
Habits
Labor market
Labor supply
Labour supply
Studies
Technological change
Technology
Work ethic
title Habit formation, work ethics and technological progress
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