Insurance-markets Equilibrium with Sequential Non-convex Private and Public-Sector Labor Supply

  • Vasilev Aleksandar Asst. Professor and CERGE-EI Affiliate Fellow, Department of Economics, American University in Bulgaria

Abstract

This paper describes the lottery- and insurance-market equilibrium in an economy with non-convex private- and public-sector employment. In contrast to Vasilev 2017, 2015, the public-sector labor supply decision is a sequential one. This requires two separate insurance market to operate, one for private-sector work, and one for public-sector employment. In addition, given that the labor choice for private- and public-sector hours is made in succession, the insurance market for public emloy- ment needs to open once the other insurance market has closed. This segmentation and sequentiality of insurance markets operation is a new result in the literature and a direct consequence of the double non-convexity, and the sequential nature of the sectoral labor supply decision.

References

Hansen, G. and T. Sargent (1988). Straight time and overtime in Equilibrium. Journal of Monetary Economics 2, 281–308.
Vasilev, A. (2015). Insurance-Markets Equilibrium with Double Indivisible Labor
Supply. Czech Economic Review 9, 91–103.
Vasilev, A. (2016). Straight-time and Overtime: A Sequential-Lottery Approach.
Theoretical and Practical Research in Economic Fields 13(1), 81-84.
Vasilev, A. (2017). Aggregation with a Double Non-Convex Labor Supply Decision: Indivisible Private- and Public-Sector Hours. Ekonomia journal. Forthcoming.
Published
2017-03-31
How to Cite
ALEKSANDAR, Vasilev. Insurance-markets Equilibrium with Sequential Non-convex Private and Public-Sector Labor Supply. Journal of Mathematical Economics and Finance, [S.l.], v. 2, n. 2, p. 19-34, mar. 2017. ISSN 2458-0813. Available at: <https://journals.aserspublishing.eu/jmef/article/view/913>. Date accessed: 03 dec. 2024. doi: https://doi.org/10.14505//jmef.v2.2(3).02.