Cheap Thrills: The Price of Leisure and the Global Decline in Work Hours

68 Pages Posted: 31 Aug 2020 Last revised: 15 May 2023

See all articles by Alexandr Kopytov

Alexandr Kopytov

University of Rochester - Simon Business School

Nikolai L. Roussanov

University of Pennsylvania - The Wharton School; National Bureau of Economic Research (NBER)

Mathieu Taschereau-Dumouchel

Cornell University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: August 2020

Abstract

Recreation prices and hours worked have both fallen over the last century. We construct a macroeconomic model with general preferences that allows for trending recreation prices, wages, and work hours along a balanced-growth path. Estimating the model using aggregate data from OECD countries, we find that the fall in recreation prices can explain a large fraction of the decline in hours. We also use our model to show that the diverging prices of the recreation bundles consumed by different demographic groups can account for much of the increase in leisure inequality observed in the United States over the last decades.

Suggested Citation

Kopytov, Alexandr and Roussanov, Nikolai L. and Taschereau-Dumouchel, Mathieu, Cheap Thrills: The Price of Leisure and the Global Decline in Work Hours (August 2020). NBER Working Paper No. w27744, Available at SSRN: https://ssrn.com/abstract=3683620

Alexandr Kopytov (Contact Author)

University of Rochester - Simon Business School ( email )

Rochester, NY 14627
United States

Nikolai L. Roussanov

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Mathieu Taschereau-Dumouchel

Cornell University - Department of Economics ( email )

414 Uris Hall
Ithaca, NY 14853-7601
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
12
Abstract Views
489
PlumX Metrics