I want to calibrate the disutility of working for a developing country. As such I want theta (disutility of working parameter) to match the fact that on average people in developing countries work 40% of their non-sleeping time. I do however not know how to do this
I think my problem starts with the fact that I don’t know how to relate/ convert the steady state value of labour to hours worked.
Any tips or trics? Or papers that describe detailed how they do this?
PS: my utility function without the E_0 and the sum sign: beta C_t^(1-sigma)/(1-sigma) - theta * L_t^(1+chi)/(1+chi)]