VoxTalks Economics

S8 Ep10: Who should work, and how much?

Feb 14, 2025
Jonna Olsson, an economist from the Norwegian School of Economics, dives into the complexities of work patterns and productivity. She discusses whether more productive individuals really work more or less, challenging common beliefs. Olsson explores the intricate balance between wages and leisure, revealing how economic growth influences these choices. The conversation also touches on how risk management and access to insurance can affect productivity, alongside a critique of current labor market models that overlook essential dynamics.
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INSIGHT

Productivity and Leisure

  • The most productive people are those who earn the most money.
  • People don't work 24/7 because they also value leisure.
INSIGHT

Wage-Hours Puzzle

  • There's a weak correlation between wages and hours worked within a country.
  • High-wage earners in richer countries work more, while low-wage earners work more in poorer countries.
INSIGHT

Work and Insurance

  • Without insurance, highly productive individuals work less because their income effect outweighs the substitution effect.
  • Less productive individuals have to work more to maintain consumption levels.
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