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https://doi.org/10.3386/w21689

has been cited by the following article:

• TITLE: Reference-Dependent Preferences and the Labor Supply of Chinese Drivers

  AUTHORS: Yunqiu Tu

  KEYWORDS: Reference-Dependent Preferences, Labor Supply, Chinese Driver

  JOURNAL NAME: Open Journal of Social Sciences, Vol.8 No.9, September 29, 2020

  ABSTRACT: This paper takes a comprehensive study of taxi drivers’ labor supply behavior using a new dataset of taxi drivers from China. We find strong evidence that the working hours of drivers are negatively related to the hourly rates, and this effect is both statistically and economically significant. We then conduct a discrete-choice model, showing that the probability of stopping keeps increasing as cumulative working hours increase, but the probability of stopping first increases and then decreases as the cumulative fare increases. Lastly, we use the asymmetric model with the income target and working hour target as dummy variables, and the probability of stopping is significantly positively related to income target but shows no significant relation with cumulative fare.