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Leisure time and the sectoral composition of employment

Author

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  • Edgar Cruz

    (Universidad de Guanajuato)

  • Xavier Raurich

    (Universitat de Barcelona)

Abstract

We observe the following patterns in the US economy during the period 1965-2015: (i) the rise of the service sector, (ii) the increase in leisure time, and (iii) the increase in recreational services. To show the last pattern, we measure the fraction of the value added of the service sector explained by the consumption of recreational services and we show that it increases during this period. We explain these three patterns of structural change in a multisector growth model in which leisure time increases with income. As a consequence, the consumption of recreational services increases since they are consumed during leisure time. We show that the introduction of recreational services contributes to explain the rise of the service sector, inequality in leisure, and employment differences across countries caused by differences in income taxes. (Copyright: Elsevier)

Suggested Citation

  • Edgar Cruz & Xavier Raurich, 2020. "Leisure time and the sectoral composition of employment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 38, pages 198-219, October.
  • Handle: RePEc:red:issued:19-306
    DOI: 10.1016/j.red.2020.04.004
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    3. Jaime Alonso-Carrera & María Jesús Freire-Serén & Xavier Raurich, 2017. "Anatomizing the Mechanics of Structural Change," UB Economics Working Papers 2017/360, Universitat de Barcelona, Facultat d'Economia i Empresa, UB School of Economics.

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    More about this item

    Keywords

    Sectoral composition; Leisure; Leisure inequality; Recreational services; Elasticity of substitution;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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