European Vs. American Hours Worked: Assessing the Role of the Extensive and Intensive Margins
French National Center for Scientific Research (CNRS) - Centre d'Etudes Prospectives d'Economie Mathematique Appliquees a la Planification (CEPREMAP); Université du Maine - Groupe d' Analyse des Itineraires et Niveaux Salariaux (GAINS); Institute for the Study of Labor (IZA)
Coralia Quintero Rojas
Universidad de Guanajuato; GAINS-TEPP
IZA Discussion Paper No. 3846
Europeans have worked less than Americans since the 1970s. In this paper, we quantify the relative importance of the extensive and intensive margins of aggregate hours of market work on the observed differences. Our counterfactual exercises show that the two dimensions of the extensive margin, the employment rate and the participation rate, explain the most of the total-hours-gap between regions. Moreover, both ratios have similar weight. Conversely, the intensive margin, measured by the number of hours worked per employee, has the smallest role.
Number of Pages in PDF File: 21
Keywords: hours of market work, participation, employment, intensive and extensive margins
JEL Classification: E2, J2working papers series
Date posted: December 1, 2008
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