This worked fine when compiling my thesis last year.


-- test-workscited.tex

% for bibliographic entries

% following hanging indent code (also in workscited) taken from
%  http://www.ntg.nl/pipermail/ntg-context/2004/005280.html
% [NTG-context] Re: Again: "hanging" for a lot of paragraphs?
%  ~ Patrick Gundlach
\def\hangover{\hangafter=1\hangindent=0.5in}
\definestartstop[workscited][
  before={
    \page[no]
    \indenting[never]
    \startalignment[left]
    \bibliography{Recommended Reading}
    \stopalignment
    \setupwhitespace[medium]
    \bgroup\appendtoks\hangover\to\everypar
    },
  after={
    \egroup
    \indenting[yes]}]


\starttext

  \startworkscited

    \input{knuth}

  \stopworkscited

\stoptext