# Question on steady state of labor

Dear Professor Pfeifer,

Thank you for reading this post.

Is it necessary to calibrate the steady state of labor to 1/3 in DSGE model? I see in many papers that the authors just set households’ utility function as \max {{E}_{0}}\sum\limits_{t=0}^{\infty }{{{\beta }^{t}}\left[ \log {{c}_{t}}-\frac{1}{1+\gamma }{{\left( {{n}_{t}} \right)}^{1+\gamma }} \right]} and the steady state of labor is not close to 1/3 (e.g. Gerali2010.pdf (815.8 KB)). Do I misunderstand anything?

It’s not necessary, but a straightforward way of setting the relative weight of leisure in utility to a sensible value.