Are Labor Supply Decisions Consistent with Neoclassical Preferences? Evidence from Indian Boat Owners

Xavier Gine, Monica Martinez-Bravo and Marian Vidal-Fernandez

No 10227, IZA Discussion Papers from IZA Network @ LISER

Abstract: This paper studies the labor supply of South Indian boat owners using daily labor participation decisions of 249 boat owners during seven years. We test the standard neoclassical model of labor supply and find that boat owners' labor participation depends positively on expected earnings but also on recent accumulated earnings, albeit weakly. Participation elasticities with respect to expected earnings range between 0.8 and 1.3 and about -0.05 and -0.01 with respect to changes in recent income. While the standard neoclassical model is statistically rejected, it is a good approximation of the labor supply behavior of boat owners in southern India.

Keywords: intertemporal labor supply; daily income (search for similar items in EconPapers)
JEL-codes: J22 J31 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2016-09
New Economics Papers: this item is included in nep-lma
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Published - published in: Journal of Economic Behaviour and Organisation, 2017, 142, 331-347

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Related works:
Journal Article: Are labor supply decisions consistent with neoclassical preferences? Evidence from Indian boat owners (2017)
Working Paper: Are Labor Supply Decisions Consistent with Neoclassical Preferences? Evidence from Indian Boat Owners (2017)
Working Paper: Are labor supply decisions consistent with neoclassical preferences ? evidence from Indian boat owners (2016)
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