Not Working at Work: Loafing, Unemployment, and Labor Productivity

Working Paper: CEPR ID: DP10712

Authors: Michael C. Burda; Katie R. Genadek; Daniel S. Hamermesh

Abstract: Using the American Time Use Survey (ATUS) 2003-12, we estimate time spent by workers in non-work while on the job. Non-work time is substantial and varies positively with the local unemployment rate. While the average time spent by workers in non-work conditional on any positive non-work rises with the unemployment rate, the fraction of workers who report time in non-work varies pro-cyclically, declining in recessions. These results are consistent with a model in which heterogeneous workers are paid efficiency wages to refrain from loafing on the job. That model correctly predicts relationships of the incidence and conditional amounts of non-work with wage rates and measures of unemployment benefits in state data linked to the ATUS, and it is consistent with observed occupational differences in non-work.

Keywords: Efficiency Wage; Labor Productivity; Loafing; Nonwork; Shirking; Time Use

JEL Codes: E24; J22


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
local unemployment rates (J69)nonwork time at work (J29)
demographic factors (J11)nonwork time at work (J29)
local unemployment rates (J69)aggregate labor productivity (O47)
nonwork time at work (J29)aggregate labor productivity (O47)

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