Sergio Jara-Díaz, Rodrigo Contreras
Abstract
Diminishing mandatory travel time induces a reassignment of time allocation to other activities like work and leisure. We study the evolution of the framework behind labor supply analysis – understood as the relation between the wage rate and the time the individual is willing to work – from the perspective of time use models in order to understand first and introduce later the role that elements such as the time committed to transport, and the amount of income assigned to committed consumption, play in the reassignment of liberated time. We show that the willingness to work always decreases with transport time and increases with committed expenses; and that the willingness to work increases with the wage rate if a net fixed income exists or decreases otherwise.
