Hours Worked in Selected OECD Countries: An Empirical Assessment
38 Pages Posted: 27 Jul 2017
Date Written: July 15, 2017
In this paper, we empirically assess the evolution of the aggregate hours worked, with a particular emphasis on their age structure, in a sample of OECD countries, along the period 1970-2007. We show that the age composition of the workforce has a large and statistically signicant effect on hours worked volatility. To exploit the multilevel structure of our data, we use a Mixed Linear Model to investigate the consequences of (i) demographic change, (ii) sector-specific and (iii) country-specific factors on hours worked by "young" (aged 15-29) and "prime-aged" (29 ) individuals. We show that changes in workforce demographics, captured by the ratio between population older than 29 and population younger than 29, are strongly and significantly correlated with the amount of hours worked by "young" individuals. We also document the impact of sectoral capital intensity and profitability on the dynamics of (aggregate) hours worked. Finally, we show that productive public expenditure, here proxied by the public investment in ICT, is beneficial for the hours worked both by young and prime-aged individuals.
Keywords: Aggregate hours of work, Labor market institutions
JEL Classification: E2, J2, J6
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