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A Model of the Trends in Hours

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  • Guillaume Vandenbroucke

Abstract

During the first half of the 20th century the workweek in the United States declined, and the distribution of hours across wage deciles narrowed. At the same time, the distribution of wages narrowed too. The hypothesis proposed is (i) Households have access to an increasing number of leisure activities which enhance the value of non-market time; (ii) The rise of education accounts for the narrowing of the wage and hours distributions. Such mechanisms, embedded into a neoclassical growth model, quantitatively account for the observations. The rise in wages is the main contributor to the decline in hours. The decline in the price of leisure goods is second in importance, yet its contribution is large.

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File URL: http://www.usc.edu/dept/LAS/economics/IEPR/Working%20Papers/IEPR_05.40_%5BVandenbroucke%5D.pdf
File Function: First version, 2005
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Bibliographic Info

Paper provided by Institute of Economic Policy Research (IEPR) in its series IEPR Working Papers with number 05.40.

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Length: 28 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:scp:wpaper:05-40

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Keywords: Hours worked; leisure; home production; technological progress;

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Cited by:
  1. Moshe Hazan, 2006. "Longevity and Hours over the Lifetime: Data and Implications," 2006 Meeting Papers 416, Society for Economic Dynamics.
  2. Bar, Michael & Leukhina, Oksana, 2005. "Accounting for Changes in Labor Force Participation of Married Women: The Case of the U.S. since 1959," MPRA Paper 17264, University Library of Munich, Germany, revised Jun 2009.

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