Ulric B. and Evelyn L. Bray Social Sciences Seminar
Abstract: Self-employed workers like taxi drivers and, more recently, rideshare drivers provide useful evidence about the nature of flexible labor supply. Rideshare platforms are superficially similar to taxicabs, but have more flexibility in work hours and occasional surge pricing which makes future marginal wages salient. We estimate stopping probability and structural models of labor supply previously applied only to fixed-shift taxicab drivers. We replicate the finding that higher accumulated income increases stopping, though the estimated loss-aversion is lower than in previous studies. Contrary to previous findings, there is no evidence that the income reference point adapts throughout the shift, and more experienced drivers do not indicate more neoclassical behavior.
Written with Sean McKenna, Matt Shum, Keith Chen, and Colin Camerer.
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