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European vs American Hours Worked: assessing the role of the extensive and intensive margins

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  • François Langot

    ()
    (GAINS-TEPP, ERMES, Cepremap and IZA)

  • Coralia Quintero-Rojas

    ()
    (Universidad de Guanajuato and GAINS-TEPP)

Abstract

Europeans have worked less than Americans since the 1970s. In this paper, we quantify the relative importance of the extensive and intensive margins of aggregate hours of market work on the observed differences. Our counterfactual exercises show that the two dimensions of the extensive margin, the employment rate and the participation rate, explain the most of the total-hours-gap between regions. Moreover, both ratios have similar weight. Conversely, the intensive margin, measured by the number of hours worked per employee, has the smallest role.

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File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I2-P4.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 29 (2009)
Issue (Month): 2 ()
Pages: 530-542

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Handle: RePEc:ebl:ecbull:eb-08j20017

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  1. Mortensen, Dale T. & Pissarides, Christopher A., 1999. "Job reallocation, employment fluctuations and unemployment," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 18, pages 1171-1228 Elsevier.
  2. Langot, François & Quintero Rojas, Coralia, 2008. "Explaining the Evolution of Hours Worked and Employment across OECD Countries: An Equilibrium Search Approach," IZA Discussion Papers 3364, Institute for the Study of Labor (IZA).
  3. Lee Ohanian & Andrea Raffo & Richard Rogerson, 2006. "Long-term changes in labor supply and taxes: evidence from OECD countries, 1956-2004," Research Working Paper RWP 06-16, Federal Reserve Bank of Kansas City.
  4. Edward C. Prescott, 2003. "Why do Americans work so much more than Europeans?," Staff Report 321, Federal Reserve Bank of Minneapolis.
  5. Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345.
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Cited by:
  1. Temel Taskin, 2013. "Intensive margin and extensive margin adjustments of labor market: Turkey versus United States," Economics Bulletin, AccessEcon, vol. 33(3), pages 2307-2319.
  2. Christian Merkl & Dennis Wesselbaum, 2009. "Extensive vs. Intensive Margin in Germany and the United States: Any Differences?," Kiel Working Papers 1563, Kiel Institute for the World Economy.
  3. Patureau, Lise, 2012. "Labor market frictions and the international propagation mechanism," Journal of Macroeconomics, Elsevier, vol. 34(1), pages 199-222.
  4. Coralia Quintero-Rojas, 2008. "Hours worked: Explaining the cross-country differences through the effects of tax/benefit systems on the employment rate," Department of Economics and Finance Working Papers EC200803, Universidad de Guanajuato, Department of Economics and Finance.

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