Trends in hours and economic growth

Ngai, L. Rachel ORCID: 0009-0005-1605-856X and Pissarides, Christopher ORCID: 0000-0002-0695-058X (2008) Trends in hours and economic growth. Review of Economic Dynamics, 11 (2). pp. 239-256. ISSN 1094-2025

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Abstract

We study substitutions between home and market production over long periods of time. We use the results to get predictions about long-run trends in aggregate market hours of work and about employment shifts across economic sectors, driven by uneven TFP growth in market and home production. The model can rationalize the observed falling or U-shaped pattern for aggregate market hours, the complete marketization of home production in agriculture and manufacturing, and the employment shift from agriculture and manufacturing to services. We find support for the model’s predictions in long-run US data.

Item Type:	Article
Official URL:	http://www.sciencedirect.com/science/journal/10942...
Additional Information:	© 2008 Elsevier
Divisions:	Centre for Economic Performance Economics
Subjects:	H Social Sciences > HB Economic Theory
JEL classification:	J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J22 - Time Allocation and Labor Supply O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J21 - Labor Force and Employment, Size, and Structure O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
Date Deposited:	13 Mar 2008 16:48
Last Modified:	03 Dec 2024 05:15
URI:	http://eprints.lse.ac.uk/id/eprint/3828

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