Even though a backward bending labor supply curve is quite possible and completely consistent with utility maximization, it seems unlikely that most people are on that portion of their labor supply curve even if it does exist. We will usually draw simple upward sloping labor supply curves assuming that the substitution effect of a wage increase is the stronger effect.

    Next we must ask what will cause an individual's labor supply curve to shift causing them to supply more or less labor at every wage.

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