Inequality in the Joint Distribution of Consumption and Time Use

56 Pages Posted: 29 Oct 2018

See all articles by jeehoon han

jeehoon han

University of Chicago

Bruce D. Meyer

University of Chicago - Irving B. Harris Graduate School of Public Policy Studies; National Bureau of Economic Research (NBER)

James X. Sullivan

University of Notre Dame - Department of Economics and Econometrics

Date Written: October 2018

Abstract

This paper examines inequality in both leisure and consumption over the past four decades using time use surveys stretching from 1975 to 2016. We show that individual and family characteristics, especially when including work hours, explain most of the long run variation in leisure. We then use these characteristics to predict the distribution of leisure in the Consumer Expenditure Survey, a survey that also provides detailed information on consumption. The advantage of this approach is that it gives us measures of consumption and leisure at the family level within a single data source. We find that leisure time is highest for families at the bottom of the consumption distribution, and typically declines monotonically as consumption rises. However, the consumption-leisure gradient is small. We find noticeable differences across family types, with the gradient being largest for single parent families and single individuals and smallest for families with a head age 65 or older. Overall, these results indicate that including both leisure and consumption, as opposed to just consumption, in a measure of economic well-being will result in less inequality. However, because the consumption-leisure gradient is not very steep, the dampening effect of leisure on overall inequality is small.

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Suggested Citation

han, jeehoon and Meyer, Bruce D. and Sullivan, James X., Inequality in the Joint Distribution of Consumption and Time Use (October 2018). NBER Working Paper No. w25199. Available at SSRN: https://ssrn.com/abstract=3274425

Jeehoon Han (Contact Author)

University of Chicago

Bruce D. Meyer

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

1155 East 60th Street
Chicago, IL 60637
United States
(773) 702-2712 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

James X. Sullivan

University of Notre Dame - Department of Economics and Econometrics ( email )

Notre Dame, IN 46556
United States

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