%A VASILEV, Aleksandar %D 2017 %T AGGREGATION WITH SEQUENTIAL INDIVISIBLE AND CONTINUOUS LABOR SUPPLY DECISIONS AND AN INFORMAL SECTOR %K %X The purpose of this paper is to explore the problem of non-convex labor supply decision in an economy with both discrete and continuous labor decisions. In contrast to the setup in Vasilev (2016a), here each household faces a sequential labor market choice - an indivisible labor supply choice in the market sector, and conditional on non-working in the official sector, a divisible hours choice in the informal sector. We show how lotteries as in Rogerson (1988) can again be used to convexify consumption sets, and aggregate over individual preferences. With a mix of sequential discrete and continuous labor supply decisions, aggregate disutility of non-market work becomes separable from market work, and the elasticity of the latter increases from unity to infinity. %U https://journals.aserspublishing.eu/tpref/article/view/1562 %J Theoretical and Practical Research in Economic Fields %0 Journal Article %R 10.14505/tpref.v8.2(16).06 %P 144-148%V 8 %N 2 %@ 2068-7710 %8 2017-12-31