An Experimental Examination of Labor Supply and Work Intensities
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.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Camerer, Colin & Babcock, Linda & Loewenstein, George & Thaler, Richard, 1996.
"Labor Supply of New York City Cab Drivers: One Day At A time,"
960, California Institute of Technology, Division of the Humanities and Social Sciences.
- Colin Camerer & Linda Babcock & George Loewenstein & Richard Thaler, 1997. "Labor Supply of New York City Cabdrivers: One Day at a Time," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 407-441.
- John C. Ham, 1982. "Estimation of a Labour Supply Model with Censoring Due to Unemployment and Underemployment," Review of Economic Studies, Oxford University Press, vol. 49(3), pages 335-354.
- Davis, Douglas D. & Holt, Charles a., 1993. "Experimental economics: Methods, problems and promise," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 8(2), pages 179-212.
- Ashenfelter, Orley, 1980.
"Unemployment as Disequilibrium in a Model of Aggregate Labor Supply,"
Econometric Society, vol. 48(3), pages 547-564, April.
- Orley Ashenfelter, 1977. "Unemployment as Disequilibrium in a Model of Aggregate Labor Supply," Working Papers 484, Princeton University, Department of Economics, Industrial Relations Section..
- A. B. Atkinson & N. H. Stern, 1980.
"On the switch from direct to indirect taxation,"
in: Econometric Studies in Public Finance, pages 195-224
National Bureau of Economic Research, Inc.
- Cox, James C & Epstein, Seth, 1989. "Preference Reversals without the Independence Axiom," American Economic Review, American Economic Association, vol. 79(3), pages 408-426, June.
- Battalio, Raymond C, et al, 1981. "Commodity-Choice Behavior with Pigeons as Subjects," Journal of Political Economy, University of Chicago Press, vol. 89(1), pages 67-91, February.
- Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-620, September.
- Chris Robinson & Nigel Tomes, 1985. "More on the Labour Supply of Canadian Women," Canadian Journal of Economics, Canadian Economics Association, vol. 18(1), pages 156-163, February.
- Nakamura, Alice & Nakamura, Masao, 1981. "A Comparison of the Labor Force Behavior of Married Women in the United States and Canada, with Special Attention to the Impact of Income Taxes," Econometrica, Econometric Society, vol. 49(2), pages 451-489, March.
- Ang, James S & Schwarz, Thomas, 1985. " Risk Aversion and Information Structure: An Experimental Study of Price Variability in the Securities Markets," Journal of Finance, American Finance Association, vol. 40(3), pages 825-844, July.
- Philip K. Robins, 1985. "A Comparison of the Labor Supply Findings from the Four Negative Income Tax Experiments," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 567-582.
When requesting a correction, please mention this item's handle: RePEc:ucp:jlabec:v:17:y:1999:i:4:p:638-70. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)
If references are entirely missing, you can add them using this form.