Pecuniary Incentives to Work in the U.S. During World War Ii

59 Pages Posted: 19 Jul 2000

See all articles by Casey B. Mulligan

Casey B. Mulligan

University of Chicago; National Bureau of Economic Research (NBER)

Date Written: December 1997


It is argued that changes in workers' budget sets cannot explain the dramatic increases in" civilian work in the U.S. during World War II. Although money wages grew during the period wartime after-tax real wages were lower than either before or after the war. Evidence from the" 1940's also appears to be inconsistent with other pecuniary explanations such as wealth effects of" government policies, intertemporal substitution induced by asset prices and changes in the nonmarket price of time. Although untested and relatively undeveloped nonpecuniary models of behavior are tempting explanations for wartime work."

Suggested Citation

Mulligan, Casey B., Pecuniary Incentives to Work in the U.S. During World War Ii (December 1997). NBER Working Paper No. w6326, Available at SSRN:

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