The backward-bending labor supply curve includes each of these variables except

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The backward-bending labor supply curve is shaped by the income and substitution effects. As wages increase, individuals may choose to work more in order to take advantage of the higher income (income effect) or they may choose to work less because their income needs are satisfied and they can afford more leisure time (substitution effect). The savings effect is not a factor in shaping the backward-bending labor supply curve.

The Backward-Bending Labor Supply Curve Includes Each of These Variables