The immaterial sustenance of work and leisure: A new look at the work-leisure model

Arie Sherman, Tal Shavit

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

We introduce a model of labor supply that considers the immaterial sustenance value of work per se. We suggest that people ask for compensation when increasing work hours but also when reducing work hours even when continuing to work part-time. Based on survey results, we show that the reference point (the worker's actual position) is important, and has an effect on the requested compensation when increasing or decreasing the number of hours worked. We find that the requested compensation is neither linear and nor symmetrical, and suggest that welfare policy should take the immaterial sustenance into account.

Original languageEnglish
Pages (from-to)10-16
Number of pages7
JournalJournal of Socio-Economics
Volume46
DOIs
StatePublished - Oct 2013
Externally publishedYes

Keywords

  • Leisure
  • Loss aversion
  • Reference point
  • Relative compensation
  • Work

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