Tag

Part-Time Work

2 cards

Economics (general)RCT
Non-Linear Compensated Labor Supply Elasticity
Compensated labor supply elasticity is highly elastic below 30 weekly work hours (exceeding 1.0), but becomes highly inelastic at 40 hours per week and above (dropping to 0.5–0.6) [3, 11, 19].
Economics (general)RCT
Part-Time Labor Scarcity Rationalization
Because the marginal value of time curve transitions rapidly from highly elastic below 30 hours to highly inelastic above 30 hours, the wage range in which part-time employment is optimal is extremely narrow, naturally generating a sparse intermediate hours distribution.