ACCI Conference 2024

This study aims to examine the impact of consumer impatience on their decisions regarding work and leisure when public transfer income is provided. We investigate whether individuals tend to reduce their work hours or discontinue working altogether, or if they continue working as usual when they receive public transfers from governmental sources. We evaluate individual time preference for impatience measure and utilize the ordered probit model with the National Survey of Tax and Benefit (NaSTaB) panel data in South Korea. Our preliminary result indicates that the choice between work and leisure is significantly influenced by consumer impatience. The level of impatience, evaluated through measures of time preference and discount rates, has a noticeable impact on the choice between work and leisure when transfer income is available. Impatient individuals tend to either cease working or continue working differently than those who exhibit patience. While impatience isn't associated with a desire to stop working altogether, it does influence a willingness to work fewer hours when transfer income is on the table.

Author(s): Namhoon Kim, Travis Mountain