Do workers work more when earnings are high?

Tess Stafford

World of Labour, 2018, No 455, 11 pages

Abstract: A fundamental question in economic policy is how labor supply responds to changes in remuneration. The responsiveness of labor supply determines the size of the employment impact and efficiency loss of progressive income taxation. It also affects predictions about the impacts of policies ranging from fiscal responses to business cycles to government transfer programs. The characteristics of jobs held by independent contractors provide an opportunity to overcome problems faced by earlier studies and help answer this fundamental question.

Keywords: labor supply; wage elasticity; substitution effect; reference dependence; returns to work experience (search for similar items in EconPapers)
JEL-codes: D9 J22 J24 J31 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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