A Study on the Elasticity of Labor Supply of Chinese Taxi Drivers

The theory of labor supply consists of two major theories: neoclassical theory and reference dependence theory. However, the theories are both interoperable and contradictory. Through the literature review of the development of labor supply theories and combined with the study on current development status of China’s taxi industry, this paper made a study on the elasticity of labor supply of Chinese taxi drivers. The theories and models of labor supply are sorted out and analyzed by taking the Chinese taxi industry as an example to be the basis for a further empirical research.