'Keeping Up with the Joneses' Effect as a Driver for Increased Work Hours
The 'keeping up with the Joneses' effect, driven by rising income inequality, proposes a causal link to longer working hours. This social phenomenon occurs when the conspicuous consumption of the wealthy sets a higher standard for a desirable lifestyle. In response, others may alter their preferences to prioritize material goods, compelling them to work more to afford status-enhancing items. This behavioral response generates significant negative externalities: the initial luxury consumption directly reduces the utility of others, and the subsequent increase in general work and consumption depletes limited environmental resources.
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CORE Econ
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Economics
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.3 Doing the best you can: Scarcity, wellbeing, and working hours - The Economy 2.0 Microeconomics @ CORE Econ
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