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On the Allocation of Time - A Quantitative Analysis of the U.S. and France

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  • Georg Duernecker
  • Berthold Herrendorf

Abstract

We study the allocation of time in the U.S. and in Europe during 1960–2010. We find that market hours decreased and leisure increased most in France and least in the U.S. Contrary to what standard theory predicts, home hours changed comparatively little. We show that the growth model with home production can account for the patterns in France and the U.S. if we feed in taxes and labor productivities. To obtain this result it is crucial to measure the labor productivity of home production in a comparable way in both countries, instead of calibrating these productivities like the literature does.

Suggested Citation

  • Georg Duernecker & Berthold Herrendorf, 2015. "On the Allocation of Time - A Quantitative Analysis of the U.S. and France," CESifo Working Paper Series 5475, CESifo.
    • Handle: RePEc:ces:ceswps:_5475
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    Citations

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    Cited by:

    1. Timo Boppart & L. Rachel Ngai, 2021. "Rising inequality and trends in leisure," Journal of Economic Growth, Springer, vol. 26(2), pages 153-185, June.
    2. Alexander Bick & Nicola Fuchs-Schündeln & David Lagakos, 2018. "How Do Hours Worked Vary with Income? Cross-Country Evidence and Implications," American Economic Review, American Economic Association, vol. 108(1), pages 170-199, January.
    3. V. Kerry Smith & Min Qiang Zhao, 2016. "Evaluating Economy-Wide Benefit Cost Analyses," NBER Working Papers 22769, National Bureau of Economic Research, Inc.
    4. Edgar Cruz & Xavier Raurich, 2020. "Leisure time and the sectoral composition of employment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 38, pages 198-219, October.
    5. Bridgman, Benjamin & Duernecker, Georg & Herrendorf, Berthold, 2018. "Structural transformation, marketization, and household production around the world," Journal of Development Economics, Elsevier, vol. 133(C), pages 102-126.
    6. Michelle Rendall, 2018. "Female Market Work, Tax Regimes, and the Rise of the Service Sector," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 28, pages 269-289, April.
    7. Robert Duval-Hernandez & Lei Fang & L. Rachel Ngai, 2017. "Taxes and Market Hours: The Role of Gender and Skill," FRB Atlanta Working Paper 2017-8, Federal Reserve Bank of Atlanta.
    8. Duernecker, Georg & Herrendorf, Berthold, 2018. "On the allocation of time – A quantitative analysis of the roles of taxes and productivities," European Economic Review, Elsevier, vol. 102(C), pages 169-187.
    9. Bridgman, Benjamin, 2016. "Home productivity," Journal of Economic Dynamics and Control, Elsevier, vol. 71(C), pages 60-76.
    10. Benjamin Bridgman, 2016. "Engines of Leisure," BEA Working Papers 0137, Bureau of Economic Analysis.
    11. Klein, Tobias & Bronnenberg, Bart & Xu, Yan, 2018. "Consumer Time Budgets and Grocery Shopping Behavior," CEPR Discussion Papers 13302, C.E.P.R. Discussion Papers.
    12. Alessio Moro & Solmaz Moslehi & Satoshi Tanaka, 2017. "Does Home Production Drive Structural Transformation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(3), pages 116-146, July.
    13. Michelle Rendall, 2018. "Female Market Work, Tax Regimes, and the Rise of the Service Sector," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 28, pages 269-289, April.
    14. Xu, Yan, 2017. "Essays on preference formation and home production," Other publications TiSEM b028fd7e-53ba-4ff6-97eb-4, Tilburg University, School of Economics and Management.
    15. Andinet Woldemichael & Abebe Shimeles, 2019. "Working Paper 329 - Human Capital, Productivity, and Structural Transformation," Working Paper Series 2455, African Development Bank.
    16. Fuchs-Schündeln, Nicola & Bick, Alexander & Lagakos, David, 2016. "How Do Average Hours Worked Vary with Development? Cross-Country Evidence and Implications," VfS Annual Conference 2016 (Augsburg): Demographic Change 145576, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    home production; labor productivity; leisure; time allocation;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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