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Advertising and labour supply: why do Americans work such long hours?

Author

Listed:
  • Keith Cowling
  • Rattanasuda Poolsombat
  • Philip Tomlinson

Abstract

This paper advances the view that the intensity of creation of wants through advertising and marketing might be an influence on decisions made by Americans about how much time they should devote to paid work and how much time to leisure. In exploring this argument, we employ vector auto-regression analysis to estimate long-run supply schedules for US workers in the twentieth century. We find that advertising expenditure is significant in determining US hours of work, thus providing support for the hypothesis that preferences over work-leisure choices are malleable and are manipulated by the marketing effort.

Suggested Citation

  • Keith Cowling & Rattanasuda Poolsombat & Philip Tomlinson, 2011. "Advertising and labour supply: why do Americans work such long hours?," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(3), pages 283-301.
  • Handle: RePEc:taf:irapec:v:25:y:2011:i:3:p:283-301
    DOI: 10.1080/02692171.2010.483472
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    References listed on IDEAS

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    1. Alberto F. Alesina & Edward L. Glaeser & Bruce Sacerdote, 2006. "Work and Leisure in the U.S. and Europe: Why So Different?," NBER Chapters,in: NBER Macroeconomics Annual 2005, Volume 20, pages 1-100 National Bureau of Economic Research, Inc.
    2. Freeman, Richard B & Schettkat, Ronald, 2001. " Marketization of Production and the US-Europe Employment Gap," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(0), pages 647-670, Special I.
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    Cited by:

    1. Fabio FIORILLO & Marco LILLA & Stefano STAFFOLANI, 2013. "Advertising Has Got You On The Run. Well-Being, Consumption and Leisure in a GE model," Working Papers 389, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    2. Konov, Joshua Ioji / JK, 2013. "Enhancing Markets (i.e. Economies) Transmissionability to Optimize Monetary Policies’ Effect," MPRA Paper 46950, University Library of Munich, Germany.
    3. Driver, Ciaran, 2015. "Advertising’s Elusive Economic Rationale: is there a case for limiting tax relief?," MPRA Paper 68790, University Library of Munich, Germany.

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