New York City Cab Drivers' Labor Supply Revisited: Reference-Dependent Preferences with Rational-Expectations Targets for Hours and Income

American Economic Review - Tập 101 Số 5 - Trang 1912-1932 - 2011
Vincent P. Crawford1, Juanjuan Meng2
1Department of Economics, University of Oxford, Manor Road, Oxford OX1 3UQ, United Kingdom, and Department of Economics, University of California, San Diego, 9500 Gilman Drive, La Jolla, CA 92093-0508.
2Guanghua School of Management, Peking University, Beijing 100871, China

Tóm tắt

This paper proposes a model of cab drivers' labor supply, building on Henry S. Farber's (2005, 2008) empirical analyses and Botond Kőszegi and Matthew Rabin's (2006; henceforth “KR”) theory of reference-dependent preferences. Following KR, our model has targets for hours as well as income, determined by proxied rational expectations. Our model, estimated with Farber's data, reconciles his finding that stopping probabilities are significantly related to hours but not income with Colin Camerer et al.'s (1997) negative “wage” elasticity of hours; and avoids Farber's criticism that estimates of drivers' income targets are too unstable to yield a useful model of labor supply. (JEL J22, J31, L92)

Từ khóa


Tài liệu tham khảo

10.1257/aer.101.2.470

10.1162/003355397555244

Crawford Vincent, 2008, University of California at San Diego, Department of Economics Working Paper, 2008

Crawford Vincent, 2011, American Economic Review. http://www.aeaweb.org/articles.php?doi=10.1257/ aer., 101, 1912, 10.1257/aer.101.5.1912

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10.1257/aer.98.3.1069

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10.1257/aer.97.4.1047

10.1257/aer.99.3.909

10.1086/250063

10.1257/aer.98.1.38

10.2307/2937956

Thông tin
Thông tin xuất bản

American Economic Review

Tập 101 Số 5

1912-1932

Thông tin tác giả