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How do Hours Worked Vary with Income? Cross-Country Evidence and Implications

Author

Listed:
  • Nicola Fuchs-Schündeln

    (Goethe University Frankfurt)

  • David Lagakos

    (University of California, San Diego)

  • Alexander Bick

    (Arizona State University)

Abstract

How do average hours worked vary across the world income distribution? To answer this question, we build a new internationally comparable database of hours worked covering countries of all income levels. We document that average hours worked per adult are substantially higher in low-income countries than in high-income countries. This pattern holds for both men and women, for adults of all ages and education levels, and along both the extensive margin (employment rates) and intensive margin (hours per worker). Our results imply that labor productivity and welfare differences across countries are larger than suggested by differences in consumption per capita.

Suggested Citation

  • Nicola Fuchs-Schündeln & David Lagakos & Alexander Bick, 2017. "How do Hours Worked Vary with Income? Cross-Country Evidence and Implications," 2017 Meeting Papers 568, Society for Economic Dynamics.
  • Handle: RePEc:red:sed017:568
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    More about this item

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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