Reference Dependent Preference and Labor Supply:Evidence from China

作     者：Guanfu Fang Guanliang Hu Lan Yao 

作者机构：School of BusinessShanghai University of International Business and EconomicsShanghai 201620China School of EconomicsShanghai University of Finance and EconomicsShanghai 200433China 

出 版 物：《Frontiers of Economics in China-Selected Publications from Chinese Universities》 (中国高等学校学术文摘·经济学（英文版）)

年 卷 期：2019年第14卷第2期

页      面：264-301页

学科分类：02[经济学] 

基　　金：Key Laboratory of Mathematical Economics Shanghai Training National Natural Science Foundation of China, NSFC, (71803115) Ministry of Education of the People's Republic of China, MOE Shanghai University of Finance and Economics, SUFE National Office for Philosophy and Social Sciences, NPOPSS, (17BGJ025) 

主　　题：reference dependent preference wage elasticity labor supply income shock 

摘      要：This paper investigates the daily labor supply decisions of Hangzhou cabdrivers. We find that Hangzhou *** elasticity is significantly positive, their working decisions are largely affected by shift time, and crude proxy variables for income;hours targets can hardly explain their working behavior. Nevertheless, Hangzhou cabdrivers are still affected by reference dependent preference. Using new empirical strategies, we show that cabdrivers are more likely to continue working when wage rates are unexpectedly low and more likely to quit when wage rates are unexpectedly high.