Description: Job Market Talk: Eseul Choi
Location: 368A Heady Hall
Contact Person: Otávio Bartalotti
Title: Does the target matter? The Dynamic Labor Decision of Fishermen
Abstract: This paper explains whether and how labor decisions are shaped by reference-dependence. Two features of the fishery industry benefit researchers: 1) the decision of how many hours to work is not restricted and 2) the return to labor is varying stochastically. This paper proposes a fully dynamic optimal stopping model and estimates the structural model with novel survey data of fishermen. The data consists of 460 halibut longline trips by 43 fishermen in 2006-07, including the target harvest outcome. The paper overcomes an empirical challenge of no data of subjective target in the literature. The previous papers do not observe the true target outcome but use a calculated target, which might be different from the true one and thus lead to a less reliable test of the reference-dependence. In addition, the paper contributes to the understanding of how the reference is formulated based on true targets.