publ-mit-podpubl-mit-podRostam-Afschar, DavudOrland, Andreas2024-04-082024-04-082020-04-022020https://hohpublica.uni-hohenheim.de/handle/123456789/6494In 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.enghttp://opus.uni-hohenheim.de/doku/lic_mit_pod.phpPrecautionary savingLabor supplyIntertemporal substitutionExperiment330ArbeitszeitWorkingPaper1693808897urn:nbn:de:bsz:100-opus-17428