CeDEx
Centre for Decision Research and Experimental Economics

CeDEx Seminar - Moritz Lukas (University of Hamburg)

Location
A40 Sir Clive Granger Building
Date(s)
Wednesday 23rd November 2016 (14:00-15:00)
Description

Should I Stop Or Should I Go? New Evidence on the Labor Supply of Taxi Drivers in New York City

Using a comprehensive dataset of taxi trips operated in New York City (NYC) in 2013, we revisit the labor supply patterns of taxi drivers. Our empirical specification is based on the insight that recent related findings are likely to be driven by the econometric methods applied. Our key result is that drivers are ceteris paribus more likely to end their shifts when their cumulative shift income increases, supporting the idea of reference dependent labor supply. Moreover, drivers are more likely to adhere to reference dependent behavior the more experienced they are; our results indicate that this effect is likely to be related to the driver and ownership status of more experienced drivers. We conclude that the concept of reference dependent preferences plays an important role for labor supply decisions.

 

 

 

 

Centre for Decision Research and Experimental Economics

Sir Clive Granger Building
University of Nottingham
University Park
Nottingham, NG7 2RD

telephone: +44 (0)115 951 5458
Enquiries: jose.guinotsaporta@nottingham.ac.uk
Experiments: cedex@nottingham.ac.uk