TY - JOUR
T1 - Are preferences for work reference dependent or time nonseparable? New experimental evidence
AU - Cosaert, Sam
AU - Lefebvre, Mathieu
AU - Martin, Ludivine
N1 - Publisher Copyright:
© 2022 Elsevier B.V.
PY - 2022/9
Y1 - 2022/9
N2 - 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.
AB - 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.
KW - Disutility spillovers
KW - Income targeting
KW - Lab experiment
KW - Revealed preferences
KW - Time separable model
KW - Timing-specific preferences
KW - Working time
UR - http://www.scopus.com/inward/record.url?scp=85134806678&partnerID=8YFLogxK
U2 - 10.1016/j.euroecorev.2022.104206
DO - 10.1016/j.euroecorev.2022.104206
M3 - Article
AN - SCOPUS:85134806678
SN - 0014-2921
VL - 148
JO - European Economic Review
JF - European Economic Review
M1 - 104206
ER -