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Advertising and labour supply: why do Americans work such long hours?

Author

Listed:
  • Keith Cowling
  • Rattanasuda Poolsombat
  • Philip Tomlinson

Abstract

This paper advances the view that the intensity of creation of wants through advertising and marketing might be an influence on decisions made by Americans about how much time they should devote to paid work and how much time to leisure. In exploring this argument, we employ vector auto-regression analysis to estimate long-run supply schedules for US workers in the twentieth century. We find that advertising expenditure is significant in determining US hours of work, thus providing support for the hypothesis that preferences over work-leisure choices are malleable and are manipulated by the marketing effort.

Suggested Citation

  • Keith Cowling & Rattanasuda Poolsombat & Philip Tomlinson, 2011. "Advertising and labour supply: why do Americans work such long hours?," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(3), pages 283-301.
    • Handle: RePEc:taf:irapec:v:25:y:2011:i:3:p:283-301
    DOI: 10.1080/02692171.2010.483472
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    References listed on IDEAS

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    1. Richard Freeman & Ronald Schettkat, 2002. "Marketization of Production and the US-Europe Employment Gap," CEP Discussion Papers dp0559, Centre for Economic Performance, LSE.
    2. Alberto Alesina & Edward L. Glaeser & Bruce Sacerdote, 2005. "Work and Leisure in the U.S. and Europe: Why So Different?," NBER Working Papers 11278, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Fabio FIORILLO & Marco LILLA & Stefano STAFFOLANI, 2013. "Advertising Has Got You On The Run. Well-Being, Consumption and Leisure in a GE model," Working Papers 389, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    2. Pitelis, Christos N & Tomlinson, Philip R, 2017. "Industrial organisation, the degree of monopoly and macroeconomic performance – A perspective on the contribution of Keith Cowling (1936–2016)," International Journal of Industrial Organization, Elsevier, vol. 55(C), pages 182-189.
    3. Silvia Sacchetti & Colin Campbell, 2015. "Creating Space for Communities: Social Enterprise and the Bright Side of Social Capital," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 3(2), pages 32-48, February.
    4. Konov, Joshua Ioji / JK, 2013. "Enhancing Markets (i.e. Economies) Transmissionability to Optimize Monetary Policies’ Effect," MPRA Paper 46950, University Library of Munich, Germany.
    5. Driver, Ciaran, 2015. "Advertising’s Elusive Economic Rationale: is there a case for limiting tax relief?," MPRA Paper 68790, University Library of Munich, Germany.
    6. Mevlut Tatliyer & Nurullah Gur, 2022. "Individualism and Working Hours: Macro-Level Evidence," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 159(2), pages 733-755, January.

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