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Trends in Hours and Economic Growth

  • L. Rachel Ngai

    (London School of Economics)

  • Christopher A. Pissarides

    (London School of Economics)

We study substitutions between home and market production over long periods of time. We use the results to get predictions about long-run trends in aggregate market hours of work and about employment shifts across economic sectors, driven by uneven TFP growth in market and home production. The model can rationalize the observed falling or U-shaped pattern for aggregate market hours, the complete marketization of home production in agriculture and manufacturing, and the employment shift from agriculture and manufacturing to services. We find support for the model's predictions in long-run US data. (Copyright: Elsevier)

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Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 11 (2008)
Issue (Month): 2 (April)
Pages: 239-256

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Handle: RePEc:red:issued:07-15
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  2. Gollin, Douglas & Parente, Stephen L. & Rogerson, Richard, 2000. "Farm Work, Home Work And International Productivity Differences," 2000 Annual meeting, July 30-August 2, Tampa, FL 21797, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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  25. Gronau, Reuben, 1997. "The Theory of Home Production: The Past Ten Years," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 197-205, April.
  26. Richard B. Freeman & Ronald Schettkat, 2005. "Marketization of household production and the EU–US gap in work," Economic Policy, CEPR;CES;MSH, vol. 20(41), pages 6-50, 01.
  27. Mokyr, Joel, 2000. "Why “More Work for Mother?” Knowledge and Household Behavior, 1870–1945," The Journal of Economic History, Cambridge University Press, vol. 60(01), pages 1-41, March.
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