Artikel

Windfall gains and labour supply: Evidence from the European household panel

We investigate whether workers adjust hours worked in response to windfall gains using data from the European Household Panel. The results suggest that a rise in unearned income has a negative (although small) effect on working hours. In particular, after receiving a windfall gain, individuals are more likely to drop out of the labour force and the effects become larger as the size of windfall increases. Furthermore, the empirical findings show that the impact of windfall gains on labour supply: (i) is more important for young and old individuals, (ii) is most negative for married individuals with young children, (iii) but can be positive for single individuals without children at the age of around 40 years. The latter effect can be explained by individuals using the windfall gain to set up their own business and become self-employed.

Sprache
Englisch

Erschienen in
Journal: IZA Journal of Labor Economics ; ISSN: 2193-8997 ; Volume: 3 ; Year: 2014 ; Pages: 1-27 ; Heidelberg: Springer

Klassifikation
Wirtschaft
Consumer Economics: Empirical Analysis
Time Allocation and Labor Supply
Thema
Windfall gains
Working hours

Ereignis
Geistige Schöpfung
(wer)
Sila, Urban
Sousa, Ricardo M.
Ereignis
Veröffentlichung
(wer)
Springer
(wo)
Heidelberg
(wann)
2014

DOI
doi:10.1186/2193-8997-3-1
Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Artikel

Beteiligte

  • Sila, Urban
  • Sousa, Ricardo M.
  • Springer

Entstanden

  • 2014

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