TY - GEN T1 - Flexible work arrangements and precautionary behaviour : theory and experimental evidence A1 - Orland,Andreas A1 - Rostam-Afschar,David Y1 - 2020/04/02 N2 - In the past years, work time in many industries has become increasingly flexible opening up a new channel for intertemporal substitution. To study this, we set up a two-period model with wage uncertainty. This extends the standard saving model by allowing a worker to allocate a fixed time budget between two work shifts or to save. To test the existence of these channels, we conduct laboratory consumption/saving experiments. A novel feature of our experiments is that we tie them to a real-effort style task. In four treatments, we turn on and off the two channels for consumption smoothing: saving and time allocation. Our four main findings are: (i) subjects exercise more effort under certainty than under risk; (ii) savings are strictly positive for at least 85 percent of subjects (iii) a majority of subjects uses time allocation to smooth consumption; (iv) saving and time shifting are substitutes, though not perfect substitutes. KW - Arbeitszeit CY - Hohenheim PB - Kommunikations-, Informations- und Medienzentrum der Universität Hohenheim AD - Garbenstr. 15, 70593 Stuttgart UR - http://opus.uni-hohenheim.de/volltexte/2020/1742 ER -