Nonwork at Work: Unemployment and Labor Productivity

Working Paper: CEPR ID: DP12087

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

Abstract: We use the American Time Use Survey (ATUS) 2003-2012 to estimate time spent in non-work on the job. Non-work is substantial and varies positively with local unemployment. Time spent in non-work conditional on any positive amount rises, while the fraction of workers reporting positive values declines with unemployment. Both effects are economically important, and are consistent with a model in which heterogeneous workers are paid efficiency wages. That model correctly predicts the relationship between the incidence of non-work and unemployment benefits in state data linked to the ATUS, and is consistent with estimated occupational differences in non-work incidence and intensity, as well as the cyclical behavior of aggregate labor productivity.

Keywords: time use; nonwork; efficiency wages; labor productivity

JEL Codes: J22; E24


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 rate (J64)proportion of nonwork time at work (J29)
local unemployment rate (J64)probability of reporting any nonwork time (J22)
local unemployment rate (J64)nonwork time at workplace (J29)

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