Are preferences for work reference dependent or time nonseparable? New experimental evidence

B-Tier
Journal: European Economic Review
Year: 2022
Volume: 148
Issue: C

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Tests of labor supply models often rely on wages. However, wage variation alone generally cannot disentangle the classical time separable model and its extensions: reference dependent preferences (income targeting) and time nonseparable preferences (disutility spillovers; timing-specific preferences). We set up a novel laboratory experiment in which individuals choose their working time. We vary, independently, wages, historical income paths, and cumulative past work. We also vary the timing of experimental sessions. Statistical tests and stochastic revealed preference methods cannot reject the classical model in favor of income targeting or disutility spillovers, but the data suggest that labor supply varies by time-of-the-day.

Technical Details

RePEc Handle
repec:eee:eecrev:v:148:y:2022:i:c:s0014292122001209
Journal Field
General
Author Count
3
Added to Database
2026-01-25