Hours Worked: Long-Run Trends

Economie d'avant garde Research Report No. 10

18 Pages Posted: 15 Jun 2005

See all articles by Jeremy Greenwood

Jeremy Greenwood

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

Guillaume Vandenbroucke

Federal Reserve Banks - Federal Reserve Bank of St. Louis

Multiple version iconThere are 2 versions of this paper

Date Written: June 2005

Abstract

For 200 years the average number of hours worked per worker declined, both in the market place and in the home. Technological progress is the engine of such transformation. Three mechanisms are stressed:

(i) The rise in real wages and its corresponding wealth effect;

(ii) The enhanced value of time off from work, due to the advent of time-using leisure goods;

(iii) The reduced need for housework, due to the introduction of time-saving appliances.

These mechanisms are incorporated into a model of household production. The notion of Edgeworth-Pareto complementarity/substitutability is key to the analysis. Numerical examples link theory and data.

Keywords: Hours worked, leisure, housework, household production, Edgeworth-Pareto complementarity/substitutability, technological progress

JEL Classification: E24, J22, O11, O33

Suggested Citation

Greenwood, Jeremy and Vandenbroucke, Guillaume, Hours Worked: Long-Run Trends (June 2005). Economie d'avant garde Research Report No. 10. Available at SSRN: https://ssrn.com/abstract=743208 or http://dx.doi.org/10.2139/ssrn.743208

Jeremy Greenwood

University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
133 South 36th Street
Philadelphia, PA 19104-6297
United States
215-898-1505 (Phone)

HOME PAGE: http://jeremygreenwood.net

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Guillaume Vandenbroucke (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of St. Louis ( email )

411 Locust St
Saint Louis, MO 63011
United States
+1 314 444 8717 (Phone)

HOME PAGE: http://www.guillaumevdb.net/

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