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Overearning – Revisited

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  • Riedel, Nadine
  • Stüber, Robert

Abstract

In a 2013 Psychological Science article, Hsee et al. designed a controlled laboratory experiment to assess whether individuals overearn, i.e., forgo leisure to work and earn beyond their consumption needs. The authors reported evidence in line with people overearning, even at the cost of happiness, and in line with mindless accumulation being the driver of this finding. In a large-scale replication and extension of Hsee et al. (2013), we cannot confirm the original paper’s findings: Our results reject that mindless accumulation is a quantitatively relevant driver of overearning behavior. In direct replications of Hsee et al. (2013), overearning turns out to be a moderate phenomenon. Extensions to the original paper, however, suggest that task enjoyment and uncertainty about future utility of consumption may establish overearning.

Suggested Citation

  • Riedel, Nadine & Stüber, Robert, 2019. "Overearning – Revisited," Journal of Economic Psychology, Elsevier, vol. 75(PA).
    • Handle: RePEc:eee:joepsy:v:75:y:2019:i:pa:s0167487018303064
    DOI: 10.1016/j.joep.2018.12.009
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    More about this item

    Keywords

    Overearning; Heuristics; Happiness; Social comparison;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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