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Money, labour supply, and growth in a liquidity costs economy*

Published online by Cambridge University Press:  17 August 2016

Alberto Petrucci
Alberto Petrucci*
Affiliation:
Università del Molise (Campobasso) and LUISS G. Carli (Rome)
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Summary

Economists often compare two ways of work sharing: increase of part-time work and the reduction of the weekly work time. Most of the literature focuses upon the labour demand size. The aim of this paper is to tackle this question from the point of view of labour supply. We calibrate on French data a sequential job search model, which as two specific features: the characterization of job offers in terms of utility level which combines hourly wage rates with available leisure time and the fact that unemployment is not the only compatible state with a job search. Simulations of the model show that, for a given labour demand, the probability to be unemployed increases with the proportion of part-time jobs and decrease with the reduction of the weekly work time.

Résumé

Résumé

Ce papier examine les effets d’une inflation anticipée dans un modèle à croissance monétaire avec offre endogène de travail et côuts de liquidité. La superneutralité de la monnaie dépend dans ce contexte de la fonction d’utilité. Différentes fonctions d’utilité sont examinées. Contrairement à d’autres approches avec offre de travail endogène, nos résultats montrent une “équivalence qualitative” de l’effet négatif de l’inflation sur le capital et le travail.

Keywords

E52042E52042
Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 66 , Issue 1 , 2000 , pp. 21 - 32
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 2000 

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Footnotes

*

This paper was written while the author was visiting the University of Exeter (UK) and revised during his visit to Columbia University (USA). The author would like to thank Richard Clarida, Ben Lockwood and Edmund Phelps for the hospitality, and two anonymous referees for helpful comments and suggestions. No one except for the author is responsible for errors and omissions. Financial support from CNR is gratefully acknowledged.

**

Department of Economics, LUISS G. Carli. Viale di Villa Massimo, n. 57, 00161 Rome, Italy. Tel. +39/06/85225741-742. Fax +39/06/8845252. E-mail: albpetru@luiss.it

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