arXiv Open Access 2026

Labor Supply under Temporary Wage Increases: Evidence from a Randomized Field Experiment

Mats Ekman Niklas Jakobsson Andreas Kotsadam
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Abstrak

We conduct a pre-registered randomized controlled trial to test for income targeting in labor supply decisions among sellers of a Swedish street paper. These workers face liquidity constraints, high income volatility, and discretion over hours. Treated individuals received a 25 percent bonus per copy sold for the duration of an issue, simulating an increase in earnings potential. Treated sellers sold more papers, worked longer hours, and took fewer days off. These findings contrast with studies on intertemporal labor supply that find small substitution effects. Notably, when we apply strategies similar to observational studies, we recover patterns consistent with income targeting.

Topik & Kata Kunci

Penulis (3)

M

Mats Ekman

N

Niklas Jakobsson

A

Andreas Kotsadam

Format Sitasi

Ekman, M., Jakobsson, N., Kotsadam, A. (2026). Labor Supply under Temporary Wage Increases: Evidence from a Randomized Field Experiment. https://arxiv.org/abs/2602.11992

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Tahun Terbit
2026
Bahasa
en
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arXiv
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Open Access ✓