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OPTIMAL SEARCH FOR OVERTIME WORK 1
Author(s) -
McKenna Chris
Publication year - 1983
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/j.1467-8586.1983.tb00449.x
Subject(s) - overtime , work (physics) , labour economics , economics , wage , microeconomics , business , engineering , mechanical engineering
ABSTRACT A search problem frequently encountered by workers is one in which wage and normal hours elements of employment contracts are uniform across firms in an industry, but opportunities for overtime working vary. Under these circumstances workers, in general, will not be indifferent between alternative contracts and may wish to exercise utility‐maximizing choice by searching out acceptable overtime opportunities. This paper discusses the nature of this decision problem, and the worker's response to various changes in the market environment.