Taxi drivers have a lot of flexibility in choosing their work hours, and we can readily observe their response to an increase in the wage. An increase in the taxi fare, which is regulated by cities, represents an increase in the wage earned by taxi drivers. A recent study of the taxi market in New York City shows that an increase in the regulated fare (an increase in the wage) actually decreases the quantity of labor supplied. In 2004 a 19 percent increase in the regulated fare decreased the miles driven per cabbie by 5.6 percent. Overall, the elasticity of miles driven (quantity of labor supplied) with respect to the fare per mile (the wage) is 0.22. In other words, a 10 percent increase in the wage decreases the quantity of labor supplied by 2.2 percent.