Aspirations in the Choice Problem between Labor and Leisure and the Job Guarantee Public Policy Schemes:A Measurement Approach

Abstract

The neoclassical market economy fails to achieve full employment. Therefore, the job guarantee schemes have become the inevitable tools to achieve full employment. The success of a scheme needs an analytical framework to run. The paper explains and gives the analytical framework to it. A few important questions have been answered here. First to run a job guarantee scheme, it is important to know the aspiration level or the reference point of a labor,and accordingly the wage sequence is to be prepared. It explains the choice problem between labor and leisure, determination of the complete wage equation and the complete computational tools to practice the job guarantee schemes. Second, the paper gives a method to identify the labor hour and the wage rate at which the labor would be ready to supply labor hour and after a certain time period beyond which the supply will be lower for a higher wage rate. Thirdly, the paper also gives a mechanism to prepare the list of jobs and the wage rates maintaining a balance between labor and the leisure in the productive activities and the labor market. Lastly, the paper gives the analytical tools to interpret the ex-post data of the job guarantee public policy schemes.