Value of leisure time based on individuals' mode choice behavior

Abstract

AbstractValues of time have been defined in various forms such as value of leisure time (shadow price of time), value of travel time, and value of saving time, and are mostly measured based on individuals' travel choice behavior. The main purpose of this study is to estimate the value of leisure time by general mode choice models. The estimated level can be used to evaluate the benefits from the increasing leisure time gained by people in Taiwan after the government has practiced a series of policies to shorten employee's working hours in the last few years. To justify the application, this study reviews and reinterprets the theoretical results of some major works on value of time derivations. Then to practically estimate the value of leisure time, it suggests a method of combining revealed preference and stated preference data for application. Finally, it conducts an empirical study on travelers' mode choices behavior in Taiwan to carry out the method suggested. The value of leisure time is estimated at 56NT$ per hour (around 1.65US$/hr), which is even lower than the minimum wage rate regulated by Taiwan government.