Working Paper: NBER ID: w23906
Authors: Alexandre Mas; Amanda Pallais
Abstract: We use a field experiment to estimate the marginal value of non-work time (MVT). During a national application process for phone survey and data entry positions, we randomly offered applicants alternative wage-hour bundles. Jobseeker choices over these bundles yield estimates for the MVT as a function of hours worked. These quantities trace out a labor supply relationship. As predicted by the conventional model of the allocation of time, the substitution effect is positive. Individual labor supply is highly elastic at low hours and becomes more inelastic at higher hours. For unemployed job applicants, the opportunity cost of a full-time job due to lost leisure, household production, and other non-work activities is approximately 60% of their estimated market wage. A similar estimate is found when we reproduce elements of this experiment in a nationally-representative survey.
Keywords: Labor Supply; Value of Nonwork Time; Field Experiment
JEL Codes: C93; J22; J64
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| hours worked (J22) | marginal value of nonwork time (MVT) (J29) |
| full-time job (J29) | opportunity cost (D61) |
| low hours worked (J22) | labor supply elasticity (J20) |
| higher hours worked (J38) | labor supply elasticity (J20) |
| nonwork time (J22) | flow value relative to market wage (J31) |
| wage-hour bundles (J31) | job seekers' choices (J68) |