Labor-Leisure Trade-off in the Laboratory

Deniz Nebioglu and Ayça Giritligil ()

No 2018-02, BELIS Working Papers from BELIS, Istanbul Bilgi University

Abstract: This paper presents the results of a series of experiments which try to test the behavioral foundations of GHH preferences using the Ramsey framework in a controlled laboratory setting. The main objective is to elicit subjects� innate preferences for income and leisure through an experimental design with real effort. To this end, we ran two experiments and we observed that subjects do not perceive leisure in the lab as real leisure, and hence they choose to work as much as they can even if the marginal revenue from extra work is very low. This result points out the methodological difficulty of creating labor/leisure choice environment in a laboratory setting. We concluded that an experiment which aims to investigate the effect of changed incentives on effort provision in a neoclassical labor supply model should not be designed as an individual decision making experiment but rather as a market experiment.

Pages: 60 pages
Date: 2018-06
New Economics Papers: this item is included in nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://repeck.bilgi.org.tr/RePEc/beb/wpbels/BelisWP_BELIS05.pdf First version, 2018 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:beb:wpbels:201802

Access Statistics for this paper

More papers in BELIS Working Papers from BELIS, Istanbul Bilgi University Contact information at EDIRC.
Bibliographic data for series maintained by Fatih Mehmet Senyurt ( this e-mail address is bad, please contact ).