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Differences in US-German Time-Allocation: Why Do Americans Work Longer Hours than Germans?

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  • Schettkat, Ronald

    ()
    (University of Wuppertal)

Abstract

The conventional view is that Americans work longer hours than Germans and other Europeans but when time in household production is included, overall working time is very similar on both sides of the Atlantic. Americans spend more time on market work but German invest more in household production. This paper examines whether these differences in the allocation of time can be explained by differences in the incentive structure, this is by the taxwedge and differences in the wage differentials, as economic theory suggests. Its analysis of unique time-use data reveals that the differences in time-allocation patterns can indeed be explained by economic variables.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 697.

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Length: 26 pages
Date of creation: Jan 2003
Date of revision:
Handle: RePEc:iza:izadps:dp697

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Keywords: time use; working hours; employment; household production;

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  1. Ronald Schettkat & Richard B. Freeman, 2002. "Marketization of production and the US-Europe employment gap," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 20061, London School of Economics and Political Science, LSE Library.
  2. Linda Bell & Richard Freeman, 1994. "Why Do Americans and Germans Work Different Hours?," NBER Working Papers 4808, National Bureau of Economic Research, Inc.
  3. Pollak, Robert A & Wachter, Michael L, 1975. "The Relevance of the Household Production Function and Its Implications for the Allocation of Time," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 83(2), pages 255-77, April.
  4. Freeman, Richard & Schettkat, Ronald, 2001. "Skill Compression, Wage Differentials, and Employment: Germany vs the US," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 582-603, July.
  5. Eisner, Robert, 1988. "Extended Accounts for National Income and Product," Journal of Economic Literature, American Economic Association, vol. 26(4), pages 1611-84, December.
  6. Juster, F. Thomas & Stafford, Frank P., 1990. "The Allocation of Time: Empirical Findings, Behavioural Models, and Problems of Measurement," Working Paper Series, Research Institute of Industrial Economics 258, Research Institute of Industrial Economics.
  7. Locay, Luis, 1990. "Economic Development and the Division of Production between Households and Markets," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 98(5), pages 965-82, October.
  8. J. Jacobs, 2008. "Book Review," De Economist, Springer, Springer, vol. 156(2), pages 215-217, June.
  9. Reuben Gronau, 1976. "Leisure, Home Production and Work--The Theory of The Allocation of Time Revisited," NBER Working Papers 0137, National Bureau of Economic Research, Inc.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Americans work more than Europeans…
    by pushmedia1 in The Ambrosini Critique on 2007-07-26 23:08:50
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Cited by:
  1. Datta Gupta, Nabanita & Smith, Nina & Stratton, Leslie S., 2005. "Is Marriage Poisonous? Are Relationships Taxing? An Analysis of the Male Marital Wage Differential in Denmark," IZA Discussion Papers 1591, Institute for the Study of Labor (IZA).
  2. Carlo Altavilla & Antonio Garofalo & Concetto Paolo Vinci, 2004. "Evaluating The Effects Of Working Hours On Employment And Wages," Working Papers, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy 11_2004, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  3. Steven J. Davis & Magnus Henrekson, 2004. "Tax Effects on Work Activity, Industry Mix and Shadow Economy Size: Evidence from Rich-Country Comparisons," NBER Working Papers 10509, National Bureau of Economic Research, Inc.
  4. Mark Aguiar & Erik Hurst, 2006. "Measuring trends in leisure: the allocation of time over five decades," Working Papers, Federal Reserve Bank of Boston 06-2, Federal Reserve Bank of Boston.
  5. Henrekson, Magnus & Dreber, Anna, 2004. "Female Career Success: Institutions, Path Dependence and Psychology," Working Paper Series in Economics and Finance 574, Stockholm School of Economics, revised 27 Jan 2005.
  6. Bonke, Jens & Datta Gupta, Nabanita & Smith, Nina, 2003. "Timing and Flexibility of Housework and Men and Women's Wages," IZA Discussion Papers 860, Institute for the Study of Labor (IZA).
  7. Mark Aguiar & Erik Hurst, 2006. "Measuring trends in leisure," Proceedings, Federal Reserve Bank of San Francisco, Federal Reserve Bank of San Francisco.
  8. Brian McCaig & Adonis Yatchew, 2007. "International welfare comparisons and nonparametric testing of multivariate stochastic dominance," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 22(5), pages 951-969.
  9. Ronald Schettkat & Joep Damen, 2004. "Demand Patterns and Employment Structures an Aggregate Analysis," DEMPATEM Working Papers, AIAS, Amsterdam Institute for Advanced Labour Studies wp11, AIAS, Amsterdam Institute for Advanced Labour Studies.

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