Fehr, Ernst; Huffman, David; Goette, Lorenz - EconWPA - 2004
effort provision. This renders explicit tests of the neoclassical theory of labor supply difŽ cult. Here we present evidence … how much to work. Despite the favorable environment, the results cast doubt on the neoclassical model. They are, however …, consistent with a model of reference-dependent preferences exhibiting loss aversion and diminishing sensitivity. …