@article{Farzin:190910, recid = {190910}, author = {Farzin, Y. Hossein and Akao, Ken-Ichi}, title = {Non-pecuniary Work Incentive and Labor Supply}, address = {2005-09}, number = {1570-2016-133555}, series = {Working Paper}, pages = {33}, year = {2005}, abstract = {Recognizing that people value employment not only to earn income to satisfy their consumption needs, but also as a means to gain socio-psychological (nonpecuniary) benefits, we show that once nonpecuniary work incentives are incorporated into standard labor supply theory, (i) the wage rate under-estimates (over-estimates) the true value of nonwork/leisure time when work has nonpecuniary benefits (costs), (ii) nonpecuniary benefits can be a substitute for monetary wages as work incentives, (iii) at very low wage rates, work can become a net source of utility, and (iii) the shape of labor supply curve differs from standard theory. We also identify conditions under which a greater nonpecuniary work incentive generates a larger individual labor supply, and examine the effects of non-wage income on labor supply both for paid and voluntary work.}, url = {http://ageconsearch.umn.edu/record/190910}, doi = {https://doi.org/10.22004/ag.econ.190910}, }