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. ...
In:
IZA Journal of Labor Economics
3 (2014), 1,
| Urban Sila, Ricardo M. Sousa