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RESEARCH PAPER
Paying for Ideal Discretion: A Framed Field Experiment on Working Time Arrangements
 
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1
Warsaw School of Economics, Poland; FAME|GRAPE, Poland
 
2
FAME|GRAPE, Poland; IZA Institute of Labor Economics, Germany; University of Regensburg, Germany
 
 
Submission date: 2024-07-09
 
 
Final revision date: 2025-01-24
 
 
Acceptance date: 2025-02-13
 
 
Publication date: 2025-06-30
 
 
Corresponding author
Lucas van der Velde   

Warsaw School of Economics, Poland; FAME|GRAPE, Poland
 
 
GNPJE 2025;322(2):1-28
 
The experiment was pre-registered in the AEA RCT registry (the unique # AEARCTR-0007642). Ethical approval for this study was obtained from the FAME|GRAPE Ethics Committee on April 27, 2021 (decision #1/2021). All files required to replicate the results of this research are available at: https://dataverse.harvard.edu/dataset.xhtml?persistentId=doi:10.7910/DVN/YHCI85.
KEYWORDS
JEL CLASSIFICATION CODES
ABSTRACT
The notion of the ideal worker entails being available at the employer’s discretion in terms of time. By contrast, the ability to set one’s own schedule is widely considered a cornerstone of work-life balance and job satisfaction. We provide causal evidence on the pecuniary and social valuation of discretion over work schedules. We embed our study in the context of gender and compare employee- and employer-initiated requests for changes towards greater discretion over working hours. We show that employer-initiated availability should be reflected in higher wages, but the premium is small. There appears to be no wage penalty to employee-initiated requests for work schedule autonomy. While our results lend support to the ideal worker model, they cast doubt on explanations linking gender wage inequality to labour market flexibility.
ACKNOWLEDGEMENTS
The authors are grateful to Katrin Auspurg, Adrian Chadi, Jose Garcia-Louzao, Thomas Hinz, Julia McQuillan, Jekaterina Navicke, David Ritter and Linas Tarasonis for their valuable insights. Participants of the ICEA 2021, AIEL 2022 and LabFam 2022 conferences gave excellent comments. Erita Narhetali provided wonderful research assistance.
FUNDING
This project was supported by the joint NCN-LMT DAINA initiative (grant #2017/27/L/HS4/03219).
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