Documents DeVoe, Sanford E. 2 results

"The authors investigate how the amount and source of income affects the importance placed on money. Using a longitudinal analysis of the British Household Panel Survey and evidence from two laboratory experiments, they found that larger amounts of money received for labor were associated with individuals placing greater importance on money; but this effect did not hold for money not related to work. The longitudinal survey analysis demonstrated these differential effects of the source of income on moneyís importance while holding constant stable individual differences. The experiments provide causal evidence that the source of income has an effect on the importance of money as well as on the effort expended to earn more money. The authorsí results suggest that, even as individual differences in the importance placed on money may affect peoplesí income, depending on its source, income can also affect the importance people place on money. The come affects the importance placed on money using a longitudinal analysis of the British Household Panel Survey and evidence from two laboratory experiments. Larger amounts of money received for labor were associated with individuals placing greater importance on money, but this effect did not hold for money not related to work. The longitudinal survey analysis demonstrated these differential effects of the source of income on moneyís importance while holding constant stable individual differences. The experiments provide causal evidence that the source of income has an effect on the importance of money as well as on the effort expended to earn more money. Even as individual differences in the importance placed on money may affect peoplesí income, our results suggests that income can also affect the importance people place on money, depending on its source."

"Using longitudinal data from the British Household Panel Survey, the authors examine how individuals' employment compensation—salaried or hourly—affects their decisions to trade time for money. Results indicate that there is a positive association between hourly wages and a desire to exchange leisure time for more money. This relationship holds even when a fixed-effects model controls for unobserved differences among individuals as well as for job-relevant factors including income, hours worked, tenure, and satisfaction. Evidence also suggests that after changing jobs in which pay schemes change from hourly to salaried, individuals' preferences remain the same in the short term, but effects of these preferences do decay over time, consistent with the notion of psychological salience."