Labor Supply and the Value of Non-Work Time: Experimental Estimates from the Field

Alexandre Mas and Amanda Pallais

No 23906, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We use a field experiment to estimate the marginal value of non-work time (MVT). During a national application process for phone survey and data entry positions, we randomly offered applicants alternative wage-hour bundles. Jobseeker choices over these bundles yield estimates for the MVT as a function of hours worked. These quantities trace out a labor supply relationship. As predicted by the conventional model of the allocation of time, the substitution effect is positive. Individual labor supply is highly elastic at low hours and becomes more inelastic at higher hours. For unemployed job applicants, the opportunity cost of a full-time job due to lost leisure, household production, and other non-work activities is approximately 60% of their estimated market wage. A similar estimate is found when we reproduce elements of this experiment in a nationally-representative survey.

JEL-codes: C93 J22 J64 (search for similar items in EconPapers)
Date: 2017-10
New Economics Papers: this item is included in nep-cta, nep-exp and nep-lma
Note: EFG LS
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Citations: View citations in EconPapers (6)

Published as Alexandre Mas & Amanda Pallais, 2019. "Labor Supply and the Value of Non-Work Time: Experimental Estimates from the Field," American Economic Review: Insights, vol 1(1), pages 111-126.

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Journal Article: Labor Supply and the Value of Non-work Time: Experimental Estimates from the Field (2019)
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