IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

A Gift of Time

  • Daiji Kawaguchi
  • Jungmin Lee
  • Daniel S. Hamermesh

How would people spend time if confronted by permanent declines in market work? We identify preferences off exogenous cuts in legislated standard hours that raised employers' overtime costs in Japan around 1990 and Korea in the early 2000s. We estimate the probability that an individual was affected by the reform and relate it to changes in time use based on time diaries. Reduced-form estimates show that the direct effect on a newly-constrained worker was a substantial reduction in market time, with the freed-up time in Japan reallocated to leisure, but in Korea also showing some impact on household production. Simulations using GMM estimates of a Stone-Geary utility function defined over time use suggest no effect on household production in either country. Estimation of a household model shows only slight evidence that spouses shared the time gift, nor that one spouse's allocation of non-market time changed when the other spouse's market work was permanently and exogenously reduced.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at Free access is also available to older working papers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18643.

in new window

Date of creation: Dec 2012
Date of revision:
Publication status: published as Labour Economics. Volume 24, October 2013, Pages 205–216
Handle: RePEc:nbr:nberwo:18643
Note: EFG LS
Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Phone: 617-868-3900
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Jennifer Hunt, 1996. "Has Work-Sharing Worked in Germany?," NBER Working Papers 5724, National Bureau of Economic Research, Inc.
  2. Goux, Dominique & Maurin, Eric & Petrongolo, Barbara, 2011. "Worktime regulations and spousal labor supply," CEPR Discussion Papers 8666, C.E.P.R. Discussion Papers.
  3. Crépon, Bruno & Kramarz, Francis, 2002. "Employed 40 Hours or Not-Employed 39: Lessons from the 1982 Mandatory Reduction of the Workweek," IZA Discussion Papers 416, Institute for the Study of Labor (IZA).
  4. Jeremy Greenwood & Ananth Seshadri & Mehmet Yorukoglu, 2005. "Engines of Liberation," Review of Economic Studies, Oxford University Press, vol. 72(1), pages 109-133.
  5. Mark Aguiar & Erik Hurst, 2005. "Consumption versus Expenditure," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 919-948, October.
  6. Burda, Michael C & Hamermesh, Daniel S., 2009. "Unemployment, Market Work and Household Production," CEPR Discussion Papers 7166, C.E.P.R. Discussion Papers.
  7. Dominique Goux & Eric Maurin & Barbara Petrongolo, 2014. "Worktime Regulations and Spousal Labor Supply," PSE - Labex "OSE-Ouvrir la Science Economique" halshs-00943036, HAL.
  8. Lundberg, Shelly J, 1988. "Labor Supply of Husbands and Wives: A Simultaneous Equations Approach," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 224-35, May.
  9. Reuben Gronau & Daniel S. Hamermesh, 2003. "Time Vs. Goods: The Value of Measuring Household Production Technologies," NBER Working Papers 9650, National Bureau of Economic Research, Inc.
  10. Mark Aguiar & Erik Hurst, 2007. "Measuring Trends in Leisure: The Allocation of Time over Five Decades," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 969-1006, 08.
  11. Michael Burda & Daniel S. Hamermesh & Philippe Weil, 2012. "Total Work and Gender: Facts and Possible Explanations," SFB 649 Discussion Papers SFB649DP2012-007, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  12. Hamermesh, Daniel S, 1998. "When We Work," American Economic Review, American Economic Association, vol. 88(2), pages 321-25, May.
  13. Lee, Jungmin & Kawaguchi, Daiji & Hamermesh, Daniel S., 2011. "Aggregate Impacts of a Gift of Time," IZA Discussion Papers 6199, Institute for the Study of Labor (IZA).
  14. Kuroda, Sachiko, 2009. "Do Japanese Work Shorter Hours than before?: Measuring Trends in Market Work and Leisure Using 1976-2006 Japanese Time-Use Survey," PIE/CIS Discussion Paper 419, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  15. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-49, June.
  16. Hamermesh, Daniel S., 2000. "Timing, Togetherness and Time Windfalls," IZA Discussion Papers 173, Institute for the Study of Labor (IZA).
  17. Lee, Jungmin, 2007. "Marriage, the Sharing Rule, and Pocket Money: The Case of South Korea," Economic Development and Cultural Change, University of Chicago Press, vol. 55(3), pages 557-81, April.
  18. Victoria Prowse, 2009. "Estimating labour supply elasticities under rationing: a structural model of time allocation behaviour," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 90-112, February.
  19. Andrea Ichino & Anna Sanz De Galdeano, 2004. "Reconciling Motherhood and Work: Evidence from Time Use Data in Three Countries," CSEF Working Papers 114, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  20. Hart,Robert A., 2004. "The Economics of Overtime Working," Cambridge Books, Cambridge University Press, number 9780521801423, October.
  21. Thomas J. Kniesner, 1976. "The full-time workweek in the United States, 1900û1970," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(1), pages 3-15, October.
  22. Almudena Sevilla-Sanz & Jose Ignacio Gimenez-Nadal, 2011. "Trends in Time Allocation: A Cross-Country Analysis," Economics Series Working Papers 547, University of Oxford, Department of Economics.
  23. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
  24. Jean Kimmel & Rachel Connelly, 2007. "Mothers’ Time Choices: Caregiving, Leisure, Home Production, and Paid Work," Journal of Human Resources, University of Wisconsin Press, vol. 42(3).
  25. Stephen Nickell, 2008. "Is the U.S. Labor Market Really That Exceptional? A Review of Richard Freeman," Journal of Economic Literature, American Economic Association, vol. 46(2), pages 384-95, June.
  26. Leora Friedberg & Anthony Webb, 2006. "Determinants and Consequences of Bargaining Power in Households," NBER Working Papers 12367, National Bureau of Economic Research, Inc.
  27. Elena Stancanelli & Arthur Van Soest, 2012. "Retirement and Home Production: A Regression Discontinuity Approach," American Economic Review, American Economic Association, vol. 102(3), pages 600-605, May.
  28. Mark Aguiar & Erik Hurst & Loukas Karabarbounis, 2013. "Time Use during the Great Recession," American Economic Review, American Economic Association, vol. 103(5), pages 1664-96, August.
  29. Daniel S. Hamermesh & Stephen J. Trejo, 1997. "The Demand for Hours of Labor: Direct Evidence from California," NBER Working Papers 5973, National Bureau of Economic Research, Inc.
  30. Huberman, Michael & Minns, Chris, 2007. "The times they are not changin': Days and hours of work in Old and New Worlds, 1870-2000," Explorations in Economic History, Elsevier, vol. 44(4), pages 538-567, October.
  31. repec:bla:restud:v:72:y:2005:i:1:p:109-133 is not listed on IDEAS
  32. Cogan, John F, 1981. "Fixed Costs and Labor Supply," Econometrica, Econometric Society, vol. 49(4), pages 945-63, June.
  33. KAWAGUCHI Daiji & NAITO Hisahiro & YOKOYAMA Izumi, 2008. "Labor Market Responses to Legal Work Hour Reduction: Evidence from Japan," ESRI Discussion paper series 202, Economic and Social Research Institute (ESRI).
  34. Landers, Renee M & Rebitzer, James B & Taylor, Lowell J, 1996. "Rat Race Redux: Adverse Selection in the Determination of Work Hours in Law Firms," American Economic Review, American Economic Association, vol. 86(3), pages 329-48, June.
  35. Akerlof, George A, 1976. "The Economics of Caste and of the Rat Race and Other Woeful Tales," The Quarterly Journal of Economics, MIT Press, vol. 90(4), pages 599-617, November.
  36. Trejo, Stephen J, 1991. "The Effects of Overtime Pay Regulation on Worker Compensation," American Economic Review, American Economic Association, vol. 81(4), pages 719-40, September.
  37. Kawaguchi, Daiji & Lee, Jungmin & Hamermesh, Daniel S., 2012. "A Gift of Time," IZA Discussion Papers 6700, Institute for the Study of Labor (IZA).
  38. Vincent P. Crawford & Juanjuan Meng, 2011. "New York City Cab Drivers' Labor Supply Revisited: Reference-Dependent Preferences with Rational-Expectations Targets for Hours and Income," American Economic Review, American Economic Association, vol. 101(5), pages 1912-32, August.
  39. Elena Stancanelli & Arthur Van Soest, 2012. "Retirement and Home Production: A Regression Discontinuity Approach," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00966873, HAL.
  40. Christopher J. Ruhm, 1996. "Are Recessions Good For Your Health?," NBER Working Papers 5570, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:18643. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.