Respuesta :
in terms of labor supply, the income effect of a higher wage causes decreases in leisure time.
What is leisure time?
- Labor productivity is based on activity in the workplace and does not include vacation time in the calculation. In contrast, psychologists and sociologists argue that leisure plays an active role in the production process.
- The economist's definition of leisure is, at least implicitly, "non-working time." Usually, this concept has been of little interest in determining whether forms on the borderline of time are 'work' or 'leisure'.
- Using empirical data from 21 OECD countries, the study found that leisure time has a double impact on labor productivity in terms of per capita GDP per hour. Moreover, leisure time is non-linearly related to labor productivity (inverted U shape).
- When the free time reaches the optimal level (5,813 hours), free time has a compensatory effect on work and can have a positive impact on labor productivity, but when free time exceeds the optimal value, free time is It can have a substitution effect on jobs and negatively impact labor productivity.
To know more about leisure time refer to:
https://brainly.com/question/17405112
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