Labor supply in the past, present, and future: A balanced-growth perspective

Item Type Journal paper
Abstract

The absence of a trend in hours worked in the postwar United States is an exception: across countries and historically, hours fall steadily by a little below 0.5% per year. Are steadily falling hours consistent with a stable utility function over consumption and leisure under balanced growth of the macroeconomic aggregates? Yes. We fully characterize the class of such functions and thus generalize the well-known “balanced-growth preferences” that demand constant (as opposed to falling) long-run hours. Key to falling hours is an income effect (of steady productivity growth on hours) that slightly outweighs the substitution effect.

Authors Boppart, Timo & Krusell, Per
Journal or Publication Title Journal of Political Economy
Language English
Subjects economics
HSG Classification contribution to scientific community
HSG Profile Area None
Refereed Yes
Date 2020
Volume 128
Number 1
Page Range 118-157
ISSN 0022-3808
Publisher DOI 10.1086/704071
Depositing User Prof. PhD Timo Boppart
Date Deposited 04 Dec 2020 13:58
Last Modified 07 Dec 2020 14:47
URI: https://www.alexandria.unisg.ch/publications/261582

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Citation

Boppart, Timo & Krusell, Per (2020) Labor supply in the past, present, and future: A balanced-growth perspective. Journal of Political Economy, 128 (1). 118-157. ISSN 0022-3808

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https://www.alexandria.unisg.ch/id/eprint/261582
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