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

This paper studies the labor supply of South Indian boat owners using daily labor participation decisions of 249 boat owners during seven years. It tests the standard neoclassical model of labor supply, which predicts that (i) individuals should be...

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Main Authors:	Gine, Xavier, Martinez-Bravo, Monica, Vidal-Fernandez, Marian
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	labor market neoclassical economic theory boat owners expected earnings elasticities labor supply fishing
Online Access:	http://documents.worldbank.org/curated/en/2016/09/26784653/labor-supply-decisions-consistent-neoclassical-preferences-evidence-indian-boat-owners http://hdl.handle.net/10986/25121

id	okr-10986-25121
recordtype	oai_dc
spelling	okr-10986-251212021-04-23T14:04:29Z Are Labor Supply Decisions Consistent with Neoclassical Preferences? : Evidence from Indian Boat Owners Gine, Xavier Martinez-Bravo, Monica Vidal-Fernandez, Marian labor market neoclassical economic theory boat owners expected earnings elasticities labor supply fishing This paper studies the labor supply of South Indian boat owners using daily labor participation decisions of 249 boat owners during seven years. It tests the standard neoclassical model of labor supply, which predicts that (i) individuals should be more likely to work when earnings are temporarily high and (ii) recent accumulated earnings should play no role in the participation decision. It finds 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 still a good approximation of the labor supply behavior of boat owners in southern India. 2016-10-06T21:29:00Z 2016-10-06T21:29:00Z 2016-09-13 Working Paper http://documents.worldbank.org/curated/en/2016/09/26784653/labor-supply-decisions-consistent-neoclassical-preferences-evidence-indian-boat-owners http://hdl.handle.net/10986/25121 English en_US Policy Research Working Paper;No. 7820 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	labor market neoclassical economic theory boat owners expected earnings elasticities labor supply fishing
spellingShingle	labor market neoclassical economic theory boat owners expected earnings elasticities labor supply fishing Gine, Xavier Martinez-Bravo, Monica Vidal-Fernandez, Marian Are Labor Supply Decisions Consistent with Neoclassical Preferences? : Evidence from Indian Boat Owners
geographic_facet	South Asia India
relation	Policy Research Working Paper;No. 7820
description	This paper studies the labor supply of South Indian boat owners using daily labor participation decisions of 249 boat owners during seven years. It tests the standard neoclassical model of labor supply, which predicts that (i) individuals should be more likely to work when earnings are temporarily high and (ii) recent accumulated earnings should play no role in the participation decision. It finds 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 still a good approximation of the labor supply behavior of boat owners in southern India.
format	Working Paper
author	Gine, Xavier Martinez-Bravo, Monica Vidal-Fernandez, Marian
author_facet	Gine, Xavier Martinez-Bravo, Monica Vidal-Fernandez, Marian
author_sort	Gine, Xavier
title	Are Labor Supply Decisions Consistent with Neoclassical Preferences? : Evidence from Indian Boat Owners
title_short	Are Labor Supply Decisions Consistent with Neoclassical Preferences? : Evidence from Indian Boat Owners
title_full	Are Labor Supply Decisions Consistent with Neoclassical Preferences? : Evidence from Indian Boat Owners
title_fullStr	Are Labor Supply Decisions Consistent with Neoclassical Preferences? : Evidence from Indian Boat Owners
title_full_unstemmed	Are Labor Supply Decisions Consistent with Neoclassical Preferences? : Evidence from Indian Boat Owners
title_sort	are labor supply decisions consistent with neoclassical preferences? : evidence from indian boat owners
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/09/26784653/labor-supply-decisions-consistent-neoclassical-preferences-evidence-indian-boat-owners http://hdl.handle.net/10986/25121
_version_	1764458606928855040

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

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