Leisure Luxuries and the Labor Supply of Young Men

66 Pages Posted: 4 Jul 2017

See all articles by Mark Aguiar

Mark Aguiar

Princeton University

Mark Bils

University of Rochester - Department of Economics; National Bureau of Economic Research (NBER)

Kerwin Kofi Charles

University of Chicago - Irving B. Harris Graduate School of Public Policy Studies

Erik Hurst

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

Date Written: June 2017

Abstract

Younger men, ages 21 to 30, exhibited a larger decline in work hours over the last fifteen years than older men or women. Since 2004, time-use data show that younger men distinctly shifted their leisure to video gaming and other recreational computer activities. We propose a framework to answer whether improved leisure technology played a role in reducing younger men's labor supply. The starting point is a leisure demand system that parallels that often estimated for consumption expenditures. We show that total leisure demand is especially sensitive to innovations in leisure luxuries, that is, activities that display a disproportionate response to changes in total leisure time. We estimate that gaming/recreational computer use is distinctly a leisure luxury for younger men. Moreover, we calculate that innovations to gaming/recreational computing since 2004 explain on the order of half the increase in leisure for younger men, and predict a decline in market hours of 1.5 to 3.0 percent, which is 38 and 79 percent of the differential decline relative to older men.

Suggested Citation

Aguiar, Mark and Bils, Mark and Charles, Kerwin Kofi and Hurst, Erik, Leisure Luxuries and the Labor Supply of Young Men (June 2017). NBER Working Paper No. w23552. Available at SSRN: https://ssrn.com/abstract=2996308

Mark Aguiar (Contact Author)

Princeton University ( email )

Princeton, NJ 08544-1021
United States

Mark Bils

University of Rochester - Department of Economics ( email )

Harkness Hall
Rochester, NY 14627-0158
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Kerwin Kofi Charles

University of Chicago - Irving B. Harris Graduate School of Public Policy Studies ( email )

1155 East 60th Street
Chicago, IL 60637
United States
(773) 834-8922 (Phone)

Erik Hurst

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
38
Abstract Views
516
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information