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How do Hours Worked Vary with Income? Cross-Country Evidence and Implications

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  • Alexander Bick
  • Nicola Fuchs-Schündeln
  • David Lagakos

Abstract

This paper builds a new internationally comparable database of hours worked to measure how hours vary with income across and within countries. We document that average hours worked per adult are substantially higher in low-income countries than in high-income countries. The pattern of decreasing hours with income holds for both men and women, for adults of all ages and education levels, and along both the extensive and intensive margin. Within countries, hours worked per employed are also decreasing in the individual wage for most countries, though in the richest countries, hours worked are flat or increasing in the wage. Our findings imply that aggregate productivity and welfare differences across countries are larger than currently thought.

Suggested Citation

  • Alexander Bick & Nicola Fuchs-Schündeln & David Lagakos, 2016. "How do Hours Worked Vary with Income? Cross-Country Evidence and Implications," NBER Working Papers 21874, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:21874
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • 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

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