The demand for leisure time in the presence of constrained work hours

Abstract

This article presents a labor supply model designed to address situations of overemployment or underemployment in the labor market. Previous labor supply models have taken the possibility of work hour constraints into consideration but typically assumed that the existence of fixed work hours only influenced the decision of labor force participation. This ignores situations in which individuals choose to be employed at fixed‐hour jobs even though these jobs do not offer the desired work hours.

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