Please use this identifier to cite or link to this item: http://hdl.handle.net/1822/12791

TitleDo windfall gains affect labour supply? evidence from the european household panel
Author(s)Sila, Urban
Sousa, Ricardo M.
KeywordsWindfall gains
Working hours
Issue date12-Jul-2011
PublisherUniversidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
Abstract(s)We investigate whether workers adjust hours worked in response to windfall gains using data from the European Household Panel. The results suggest that unexpected variation in income has a negative (although small) effect on working hours. In particular, after receiving an unanticipated 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 mostly negative for married individuals with young children, (iii) but can be positive for single individuals at the age of around 40 years.
TypeWorking paper
URIhttp://hdl.handle.net/1822/12791
Peer-Reviewedno
AccessOpen access
Appears in Collections:NIPE - Documentos de Trabalho

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