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Trends in Hours and Economic Growth

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  • L. Rachel Ngai
  • Christopher A. Pissarides

Abstract

We study long-run trends in market hours of work and employment shifts across economic sectors driven by uneven TFP growth in market and home production. We focus on the structural transformation between agriculture, manufacturing and services and on the marketization of home production. The model can rationalize the observed falling or Ushaped pattern for aggregate hours, the shift from agriculture to services and balanced aggregate growth. We find support for the model's predictions in long-run US data.

Suggested Citation

  • L. Rachel Ngai & Christopher A. Pissarides, 2006. "Trends in Hours and Economic Growth," CEP Discussion Papers dp0746, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepdps:dp0746
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    References listed on IDEAS

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    More about this item

    Keywords

    hours of work; labour supply; structural transformation; home production; marketization; balanced growth;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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