Workers tend to work more when wages are high, according to a recent study. The researchers conducted a field experiment where workers could choose their hours and effort level. They found that overall labor supply increased significantly with higher wages, especially in terms of hours worked. Interestingly, the effort put in per hour decreased with higher wages. Two models were considered to explain these results: one involving preference spillovers between time periods, and another with loss-averse preferences. The study showed that only individuals who are loss-averse reduced their effort in response to higher wages.