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Rising inequality and trends in lesiure

Author

Listed:
  • Rachel Ngai

    (london school of economics)

  • Timo Boppart

    (IIES, Stockholm University)

Abstract

This paper develops a growth model that explains the U.S. facts of rising aggregate leisure and increasing leisure inequality. Households derive utility from three sources: market produced goods, home produced goods and leisure. A key assumption is that leisure is a production activity requiring time and capital. Households allocate time and capital into each production activity. The dynamics are driven by activity-specific TFP growth and a spread in the distribution of household-specific market efficiencies. They combine to explain the time series and cross-sectional evolutions whilst the economy remains on its aggregate balance growth path.

Suggested Citation

  • Rachel Ngai & Timo Boppart, 2016. "Rising inequality and trends in lesiure," 2016 Meeting Papers 330, Society for Economic Dynamics.
    • Handle: RePEc:red:sed016:330
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Francesco Angelini & Luca V. Ballestra & Massimiliano Castellani, 2022. "Digital leisure and the gig economy: a two-sector model of growth," Papers 2212.02119, arXiv.org.
    2. Lei Fang & Anne Hannusch & Pedro Silos, 2021. "Luxuries, Necessities, and the Allocation of Time," FRB Atlanta Working Paper 2021-28, Federal Reserve Bank of Atlanta.
    3. Krenz, Astrid & Strulik, Holger, 2022. "Automation and the Fall and Rise of the Servant Economy," VfS Annual Conference 2022 (Basel): Big Data in Economics 264034, Verein für Socialpolitik / German Economic Association.
    4. 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.
    5. 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.
    6. Rosas Martínez, Víctor Hugo, 2022. "A theoretical Assessment: The Limit of Governmental Expenditures or Investments on Economic Growth," MPRA Paper 114698, University Library of Munich, Germany.
    7. Bridgman, Benjamin, 2022. "Is Productivity On Vacation? The Impact Of The Digital Economy On The Value Of Leisure," Macroeconomic Dynamics, Cambridge University Press, vol. 26(1), pages 127-148, January.
    8. Tanguy Le Fur & Alain Trannoy, 2024. "The health-maximizing level of labor supply: a macroeconomic perspective on the American Health Puzzle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(4), pages 1-32, December.
    9. Nicolás Depetris-Chauvin & Agustin Velasquez, 2023. "Trade, Income and Heterogeneous Labor Supply," Working Papers 261, Red Nacional de Investigadores en Economía (RedNIE).
    10. Tanguy Le Fur & Alain Trannoy, 2024. "The Health-Maximizing Level of Labor Supply: A Macroeconomic Perspective on the American Health Puzzle," AMSE Working Papers 2419, Aix-Marseille School of Economics, France.
    11. Alexandr Kopytov & Nikolai Roussanov & Mathieu Taschereau-Dumouchel, 2023. "Cheap Thrills: The Price of Leisure and the Global Decline in Work Hours," Journal of Political Economy Macroeconomics, University of Chicago Press, vol. 1(1), pages 80-118.

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    More about this item

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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