I do not see what there is in a continued existence of 60-hour weeks that cannot be explained by the relative strength of the income and substitution effects. This doesn’t need to tell us about a poverty equilibrium, it can just tell us about people’s preferences?
The income and substitution effects can’t fully negate all increases in income, otherwise billionaires couldn’t exist, and everyone would live paycheck to paycheck.
I do not see what there is in a continued existence of 60-hour weeks that cannot be explained by the relative strength of the income and substitution effects. This doesn’t need to tell us about a poverty equilibrium, it can just tell us about people’s preferences?
The income and substitution effects can’t fully negate all increases in income, otherwise billionaires couldn’t exist, and everyone would live paycheck to paycheck.