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

Citation:

Mas A, Pallais A. Labor Supply and the Value of Non-Work Time: Experimental Estimates from the Field. American Economic Review: Insights. Forthcoming.
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Abstract:

We estimate the marginal value of non-work time (MVT) using a field experiment. We offered job applicants randomized wage-hour bundles. Choices over these bundles yield estimates of the MVT as a function of hours, tracing out a labor supply relationship. The substitution effect is positive. Individual labor supply is highly elastic at low hours and more inelastic at higher hours. For unemployed applicants, our preferred estimate of the average opportunity cost of a full-time job due to lost leisure and household production is 60% of after-tax marginal product, and 72% when including fixed costs of employment and child care costs.

Notes:

NBER Working Paper 23906

Last updated on 06/18/2018