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Interpersonal Comparisons and Labor Supply: An Empirical Analysis

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  • George Kosicki

Abstract

If interpersonal consumption or leisure comparisons affect utility, the labor supply of individuals with equal levels of non-labor income should be more similar when classified by wage rank than by the level of wages. Also, if concern for relative leisure dominates the concern for relative consumption, then at a given wage level, wage rank should be positively related to hours supplied. Evidence of a relationship between hours supplied and wage rank is found, but conflicting evidence exists on the direction of the relationship. The most recent data suggest that concern for relative leisure dominates the concern for relative consumption.

Suggested Citation

  • George Kosicki, 1993. "Interpersonal Comparisons and Labor Supply: An Empirical Analysis," The American Economist, Sage Publications, vol. 37(1), pages 31-44, March.
    • Handle: RePEc:sae:amerec:v:37:y:1993:i:1:p:31-44
    DOI: 10.1177/056943459303700104
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    References listed on IDEAS

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    1. Lynn E. Browne, 1990. "Why do New Englanders work so much?," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 33-46.
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