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An Experimental Examination of Labor Supply and Work Intensities

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Author Info
Dickinson, David L

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Abstract

Estimated negative substitution effects on work hours question the empirical validity of the classical labor supply model. Estimates are reconciled by allowing a dual choice of hours and effort for piece-rate workers. In such a model, these negative substitution effects result from substituting on- and off-the-job leisure. We test our model using controlled experimentation on human subjects. These experiments, while not naturally occurring environments, represent real economic choices and can generate data unavailable elsewhere (e.g., effort data). The results support our model, and they have implications both for labor management and for empirical research focusing only on the hours choice. Copyright 1999 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 17 (1999)
Issue (Month): 4 (October)
Pages: 638-70
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Handle: RePEc:ucp:jlabec:v:17:y:1999:i:4:p:638-70

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  1. Charles Bellemare & Bruce Shearer, 2007. "Gift Exchange within a Firm: Evidence from a Field Experiment," Cahiers de recherche 0708, CIRPEE. [Downloadable!]
    Other versions:
  2. Honekamp, Ivonne, 2007. "High Wages - An instrument inducing workers to work more?," MPRA Paper 15847, University Library of Munich, Germany, revised 27 Jan 2009. [Downloadable!]
  3. Heike Hennig-Schmidt & Bettina Rockenbach & Abdolkarim Sadrieh, 2005. "In Search of Workers' Real Effort Reciprocity - A Field and a Laboratory Experiment," Discussion Papers 55, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
    Other versions:
  4. Marie-Claire Villeval & David Dickinson, 2004. "Does Monitoring Decrease Work Effort ? The Complementarity Between Agency and Crowding-Out Theories," Working Papers 0409, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure. [Downloadable!]
    Other versions:
  5. Claude Montmarquette & Jean-Louis Rullière & Marie-Claire Villeval & Romain Zeiliger, 2002. "Redesigning Teams and Incentives: A Real Effort Experiment with Managers of a Merged Company," CIRANO Working Papers 2002s-86, CIRANO. [Downloadable!]
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  6. Claude Montmarquette & Jean-Louis Rullière & Marie-Claire Villeval & Romain Zeiliger, 2003. "Redesigning Teams and Incentives in a Merger: An Experiment with Managers and Students," CIRANO Working Papers 2003s-69, CIRANO. [Downloadable!]
    Other versions:
  7. David Dickinson, 2001. "The Carrot vs. the Stick in Work Team Motivation," Experimental Economics, Springer, vol. 4(1), pages 107-124, June. [Downloadable!] (restricted)
    Other versions:
  8. John Duffy, 2008. "Macroeconomics: A Survey of Laboratory Research," Working Papers 334, University of Pittsburgh, Department of Economics, revised Mar 2008. [Downloadable!]
  9. David L. Dickinson, 2006. "Work effort effects in the classical labor supply model," Working Papers 06-13, Department of Economics, Appalachian State University. [Downloadable!]
  10. David Gill & Victoria Prowse, 2009. "A Novel Computerized Real Effort Task Based on Sliders," Economics Series Working Papers 435, University of Oxford, Department of Economics. [Downloadable!]
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