New study reveals impact of wage changes on labor supply decisions.
The article explores how changes in wages affect people's decisions about how much to work. By analyzing different types of wage changes, the researchers found that the cost of public funds can be calculated in labor supply models. Using a specific model, they discovered that when wages go up, people tend to work more, but the increase is slightly smaller when considering other factors. This means that the impact of wage changes on work behavior depends on the context.