Abstract
This article deals with existing models of household behavior, based on the assumption of the possibility of employees to determine their own level of consumption and employment, depending on a given wage rate and accumulated assets. An alternative view is offered that the wage rate accepted by employees can be expressed through financial assets and employment. Based on this assumption, the model "financial assets – labor price" was developed, determining the impact of the volume of financial assets of households and the level of employment on the wage rate, the minimum acceptable for workers.
 The model was tested in twelve European countries. The calculations confirmed the basic hypothesis of the study, namely the dependence of the level of wages on the volume of available assets and employment.
Highlights
This article deals with existing models of household behavior, based on the assumption of the possibility of employees to determine their own level of consumption and employment, depending on a given wage rate and accumulated assets
The wage rate at which employees agree to work can be expressed as a function of their financial assets and employment level
This article deals with the existing models of household behavior based on the assumption of the possibility of employees to determine their own level of consumption and employment, depending on a given wage rate and accumulated assets
Summary
This article deals with existing models of household behavior, based on the assumption of the possibility of employees to determine their own level of consumption and employment, depending on a given wage rate and accumulated assets. An alternative view is offered that the wage rate accepted by employees can be expressed through financial assets and employment Based on this assumption, the model "financial assets – labor price" was developed, determining the impact of the volume of financial assets of households and the level of employment on the wage rate, the minimum acceptable for workers. Most often the models describing household behavior are based on the assumption that workers have the ability to set their own level of consumption and employment, depending on the amount of wages and accumulated assets. A classical article by Prescott "Why Americans work much more than Europeans?" the following utility function is used (10):
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
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 call
