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Trends in Hours and Economic Growth

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  • Ngai, L. Rachel

    ()
    (London School of Economics)

  • Pissarides, Christopher A.

    ()
    (London School of Economics)

Abstract

We study long-run trends in market hours of work and employment shifts across economic sectors driven by uneven TFP growth in market and home production. We focus on the substitutions between market and home production and on the structural transformation between agriculture, manufacturing and services. The model can rationalize the observed falling or U-shaped pattern for aggregate hours, the complete marketization of agriculture and manufacturing, and the shift from agriculture to services without violating balanced aggregate growth. We find support for the model’s predictions in long-run US data.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2540.

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Length: 34 pages
Date of creation: Jan 2007
Date of revision:
Publication status: published in: Review of Economic Dynamics, 2008, 11 (2), 239-256
Handle: RePEc:iza:izadps:dp2540

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Keywords: balanced growth; home production; labour supply; structural transformation; hours of work; marketization;

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