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Understanding Growth and Inequality Trends: The Role of Labour Supply in the US and Germany

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  • Lars Osberg

Abstract

Between 1980 and 2000, average actual working hours per adult rose by 234 in the United States while falling by 170 in Germany. These trends imply that growth in per capita GDP may be a poor indicator of trends in average economic well-being and that trends in money income inequality may misrepresent trends in the inequality of economic well-being. Is greater inequality in the US the incentive that motivates greater work effort by Americans? Differentials in average usual working hours largely arise from differences in workforce participation -- particularly among women and older men. Except for the extreme lower tail, the distribution of usual working hours of prime age males is essentially identical and constant in Germany and the US -- which implies that the grea ter inequality of earnings in the US has no noticeable incentive effect on the labour supply of workers.

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  • Lars Osberg, 2003. "Understanding Growth and Inequality Trends: The Role of Labour Supply in the US and Germany," Canadian Public Policy, University of Toronto Press, vol. 29(s1), pages 163-184, January.
    • Handle: RePEc:cpp:issued:v:29:y:2003:i:s1:p:163-184
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    Cited by:

    1. Steffen Otterbach, 2010. "Mismatches Between Actual and Preferred Work Time: Empirical Evidence of Hours Constraints in 21 Countries," Journal of Consumer Policy, Springer, vol. 33(2), pages 143-161, June.
    2. Peter Frase & Janet Gornick, 2009. "The Time Divide in Cross-National Perspective: The Work Week, Gender and Education in 17 Countries," LIS Working papers 526, LIS Cross-National Data Center in Luxembourg.
    3. Merz, Joachim & Osberg, Lars, 2006. "Keeping in Touch – A Benefit of Public Holidays," MPRA Paper 5738, University Library of Munich, Germany.
    4. Julian Lamont, 2008. "Incentives and reflective equilibrium in distributive justice debates," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 2(1), pages 5-19, November.
    5. Lars Osberg & Andrew Sharpe, 2003. "Human Well-being and Economic Well-being: What Values Are Implicit in Current Indices?," CSLS Research Reports 2003-04, Centre for the Study of Living Standards.
    6. Joachim Merz & Lars Osberg, 2009. "Keeping in touch – A benefit of public holidays using time use diary data," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 130-166, September.
    7. Stephen P. Jenkins & Lars Osberg, 2003. "Nobody to Play with?: The Implications of Leisure Coordination," Discussion Papers of DIW Berlin 368, DIW Berlin, German Institute for Economic Research.
    8. Hugh Millward & Jamie Spinney, 2009. "Time use and rurality – Canada 2005," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 109-129, September.
    9. Alberto Alesina & Edward L. Glaeser & Bruce Sacerdote, 2005. "Work and Leisure in the U.S. and Europe: Why So Different?," NBER Working Papers 11278, National Bureau of Economic Research, Inc.
    10. Katerina Vrotsou & Kajsa Ellegård & Matthew Cooper, 2009. "Exploring time diaries using semi-automated activity pattern extraction," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 1-25, September.
    11. Sajeda Amin & Luciana Suran, 2009. "Terms of marriage and time-use patterns of young wives – Evidence from rural Bangladesh," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 92-108, September.
    12. Constantinos Alexiou & Adimulya Kartiyasa, 2020. "Does greater income inequality cause increased work hours? New evidence from high income economies," Bulletin of Economic Research, Wiley Blackwell, vol. 72(4), pages 380-392, October.
    13. Killian Mullan & Lyn Craig, 2009. "Harmonising extended measures of parental childcare in the time-diary surveys of four countries – Proximity versus responsibility," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 48-72, September.
    14. Timo Anttila & Tomi Oinas & Jouko Nätti, 2009. "Predictors of time famine among Finnish employees – Work, family or leisure?," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 73-91, September.
    15. Heather Boushey & Christian E. Weller, 2006. "Inequality and Household Economic Hardship in the United States of America," Working Papers 18, United Nations, Department of Economics and Social Affairs.
    16. Sandra L. Hofferth, 2009. "Changes in American children’s time – 1997 to 2003," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 26-47, September.

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