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

Author

Listed:
  • Sam Cosaert

    (Universiteit Antwerpen = University of Antwerp)

  • Mathieu Lefebvre

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Ludivine Martin

    (LISER - Luxembourg Institute of Socio-Economic Research, CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

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.

Suggested Citation

  • Sam Cosaert & Mathieu Lefebvre & Ludivine Martin, 2022. "Are preferences for work reference dependent or time nonseparable? New experimental evidence," Post-Print hal-03777314, HAL.
    • Handle: RePEc:hal:journl:hal-03777314
    DOI: 10.1016/j.euroecorev.2022.104206
    Note: View the original document on HAL open archive server: https://amu.hal.science/hal-03777314v1
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    Cited by:

    1. Avalos-Trujillo, Luis, 2025. "Upstream reciprocity in the battle of good vs evil," Games and Economic Behavior, Elsevier, vol. 152(C), pages 371-395.
    2. Cosaert, Sam & Surana, Khushboo, 2023. "A new interpretation and derivation of the Swaps index," Economics Letters, Elsevier, vol. 226(C).

    More about this item

    Keywords

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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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