@TechReport{iza:izadps:dp1502, author={Gersbach, Hans and Haller, Hans}, title={Beware of Workaholics: Household Preferences and Individual Equilibrium Utility}, year={2005}, month={Feb}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={1502}, url={https://www.iza.org/publications/dp1502}, abstract={This paper analyzes the effects of sociological changes in the form of a shift of influence within two-member households participating in labor and product markets. The most striking effects occur when household members differ in individual preferences and enjoy positive leisure-dependent externalities. For instance, a global sociological change where the “workaholic" member becomes more influential in each working class household can render the working class worse off. A binding restriction on the number of hours an individual is allowed to work can benefit all workers.}, keywords={externalities;general equilibrium;household behavior;labor supply}, }