ABSTRACT

Conventional economic models of utility and labor supply tend to focus narrowly on income and non-work time as the sole sources of wellbeing. However, the actual outcomes of labor supply depend on an additional factor—the extent to which workers are impeded by the employer or workplace from supplying their desired number of hours of paid work. What are the specific detrimental effects on the individual, their families and society when workers are not working their preferred hours? While it is impossible to observe workers' preferences regarding hours of labor supply and welfare directly, a recent nationally representative survey offers a unique, detailed look into aspects of individuals' self-reported levels of satisfaction with facets of work and home life. It documents the various potential consequences for workers who face constraints in the workplace or labor market that require them to work extra hours, perhaps beyond the amount of labor supply preferred by the worker.