Girish Mahajan (Editor)

Frisch elasticity of labor supply

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The Frisch elasticity of labor supply captures the elasticity of hours worked to the wage rate, given a constant marginal utility of wealth. In other words, the Frisch elasticity measures the substitution effect of a change in the wage rate on labor supply.

It is named after the economist Ragnar Frisch.

Under certain circumstances, a constant marginal utility of wealth implies a constant marginal utility of consumption.

References

Frisch elasticity of labor supply Wikipedia