Abstract
One of the most important current questions in economic analysis is whether or not labor markets clear in the short run. To answer this, it is necessary to be able to distinguish between restricted and unrestricted behavior by consumers supplying labor. This paper investigates the forms of preferences which lie behind linear models of labor supply, and derives the functional forms for commodity demands which accompany them, both with and without quantity restrictions in the labor market. Simple linkages between restricted and unrestricted demands are also considered as is the question of perfect aggregation over consumers in the presence of quantity restrictions.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
