The immaterial sustenance of work and leisure: A new look at the work–leisure model

Arie Sherman and Tal Shavit ()

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2013, vol. 46, issue C, 10-16

Abstract: We introduce a model of labor supply that considers the immaterial sustenance value of work per se. We suggest that people ask for compensation when increasing work hours but also when reducing work hours even when continuing to work part-time. Based on survey results, we show that the reference point (the worker's actual position) is important, and has an effect on the requested compensation when increasing or decreasing the number of hours worked. We find that the requested compensation is neither linear and nor symmetrical, and suggest that welfare policy should take the immaterial sustenance into account.

Keywords: Leisure; Loss aversion; Reference point; Relative compensation; Work (search for similar items in EconPapers)
JEL-codes: C91 D60 E24 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:46:y:2013:i:c:p:10-16

DOI: 10.1016/j.socec.2013.06.003

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