Abstract

This paper explores the problem of non-convex labor supply decisions in an economy with both private
and public sector jobs. In contrast to Vasilev (2015a), the sectoral labor choice is made in a sequential manner.
Still, the micro-founded representation obtained from explicit aggregation over homogeneous individuals again
features different disutility of labor across the two sectors. Thus, there is little merit in the timing of the sectoral
non-convex labor choice.