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Are long-term wage elasticities of labor supply more negative than short-term ones?

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  • Doran, Kirk

Abstract

Standard models imply that the wage-elasticity of labor supply is more negative the longer a wage change lasts. I observe decreasing daily hours during short-term wage increases, but not during a long-term one: daily income goals adjusted in the long-term.

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  • Doran, Kirk, 2014. "Are long-term wage elasticities of labor supply more negative than short-term ones?," Economics Letters, Elsevier, vol. 122(2), pages 208-210.
    • Handle: RePEc:eee:ecolet:v:122:y:2014:i:2:p:208-210
    DOI: 10.1016/j.econlet.2013.11.023
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    1. Orley Ashenfelter & Kirk Doran & Bruce Schaller, 2010. "A Shred of Credible Evidence on the Long‐run Elasticity of Labour Supply," Economica, London School of Economics and Political Science, vol. 77(308), pages 637-650, October.
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    8. Devin G. Pope & Maurice E. Schweitzer, 2011. "Is Tiger Woods Loss Averse? Persistent Bias in the Face of Experience, Competition, and High Stakes," American Economic Review, American Economic Association, vol. 101(1), pages 129-157, February.
    9. Yuan K. Chou, 2002. "Testing Alternative Models Of Labour Supply: Evidence From Taxi Drivers In Singapore," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 47(01), pages 17-47.
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    11. Henry S. Farber, 2005. "Is Tomorrow Another Day? The Labor Supply of New York City Cabdrivers," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 46-82, February.
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    3. Brodeur, Abel & Nield, Kerry, 2018. "An empirical analysis of taxi, Lyft and Uber rides: Evidence from weather shocks in NYC," Journal of Economic Behavior & Organization, Elsevier, vol. 152(C), pages 1-16.
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    6. Motghare, Swapnil, 2021. "The long-run elasticity of labor supply: New evidence for New York City taxicab drivers☆," Labour Economics, Elsevier, vol. 71(C).
    7. Tess M. Stafford, 2015. "What Do Fishermen Tell Us That Taxi Drivers Do Not? An Empirical Investigation of Labor Supply," Journal of Labor Economics, University of Chicago Press, vol. 33(3), pages 683-710.
    8. Henry S. Farber, 2014. "Why You Can't Find a Taxi in the Rain and Other Labor Supply Lessons from Cab Drivers," Working Papers 583a, Princeton University, Department of Economics, Industrial Relations Section..
    9. Henry S. Farber, 2014. "Why You Can't Find a Taxi in the Rain and Other Labor Supply Lessons from Cab Drivers," NBER Working Papers 20604, National Bureau of Economic Research, Inc.
    10. Christine L. Exley & Stephen J. Terry, 2019. "Wage Elasticities in Working and Volunteering: The Role of Reference Points in a Laboratory Study," Management Science, INFORMS, vol. 65(1), pages 413-425, January.
    11. Hammarlund, Cecilia, 2018. "A trip to reach the target? – The labor supply of Swedish Baltic cod fishermen," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 75(C), pages 1-11.
    12. Timothy J. Richards, 2020. "Income Targeting and Farm Labor Supply," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(2), pages 419-438, March.
    13. Alessandro Saia, 2022. "Trouble Underground: Demand Shocks and the Labor Supply Behavior of New York City Taxi Drivers," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(1), pages 1-27, March.
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    15. Yiyuan Ma & Ke Chen & Youzhi Xiao & Rong Fan, 2022. "Does Online Ride-Hailing Service Improve the Efficiency of Taxi Market? Evidence from Shanghai," Sustainability, MDPI, vol. 14(14), pages 1-16, July.
    16. Christine L. Exley & Stephen J. Terry, 2015. "Wage Elasticities in Working and Volunteering: The Role of Reference Points in a Laboratory Study," Harvard Business School Working Papers 16-062, Harvard Business School, revised Jun 2017.
    17. Kareem Haggag & Brian McManus & Giovanni Paci, 2017. "Learning by Driving: Productivity Improvements by New York City Taxi Drivers," American Economic Journal: Applied Economics, American Economic Association, vol. 9(1), pages 70-95, January.
    18. Henry S. Farber, 2014. "Why You Can't Find a Taxi in the Rain and Other Labor Supply Lessons from Cab Drivers," Working Papers 583, Princeton University, Department of Economics, Industrial Relations Section..
    19. Pascaline Dupas & Jonathan Robinson, 2013. "Daily Needs, Income Targets and Labor Supply: Evidence from Kenya," NBER Working Papers 19264, National Bureau of Economic Research, Inc.
    20. Lu Ling & Xinwu Qian & Satish V. Ukkusuri, 2023. "Impact of Transportation Network Companies on Labor Supply and Wages for Taxi Drivers," Papers 2307.13620, arXiv.org.
    21. Farber, Henry S, 2014. "Why You Can't Find a Taxi in the Rain and Other Labor Supply Lessons from Cab Drivers," IZA Discussion Papers 8562, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Labor supply; Behavioral economics; Hours constraints;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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