Working Paper: NBER ID: w21874
Authors: Alexander Bick; Nicola Fuchs-Schündeln; David Lagakos
Abstract: This paper builds a new internationally comparable database of hours worked to measure how hours vary with income across and within countries. We document that average hours worked per adult are substantially higher in low-income countries than in high-income countries. The pattern of decreasing hours with income holds for both men and women, for adults of all ages and education levels, and along both the extensive and intensive margin. Within countries, hours worked per employed are also decreasing in the individual wage for most countries, though in the richest countries, hours worked are flat or increasing in the wage. Our findings imply that aggregate productivity and welfare differences across countries are larger than currently thought.
Keywords: Hours Worked; Income Variation; Cross-Country Evidence; Welfare Differences
JEL Codes: E01; E24; J21; J22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Income levels (D31) | Hours worked per adult (J89) |
| Log GDP per hour (E23) | Log hours per adult (J22) |
| Individual wages (J31) | Hours worked per employed individual (J29) |
| Employment rates (J68) | Hours worked per adult (J89) |
| Hours per worker (J29) | Hours worked per adult (J89) |
| Income levels (D31) | Hours worked per employed individual (J29) |