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A Century of Work and Leisure

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armed forces. Justification? Notion of 'available workforce' Why Not Use Total Population? ... Time endowment is 24 hours per day, 365 days per year ... – PowerPoint PPT presentation

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Title: A Century of Work and Leisure


1
A Century of Work and Leisure
  • by
  • Valerie A. Rameyand
  • Neville Francis

2
Has Leisure Increased Over the Last Century?
  • Keynes (1930)
  • Economic Possibilities for Our Grandchildren
  • Lebergott (1993), Greenwood Vandebroucke
    (2005) leisure has increased dramatically over
    the last century
  • Prescott (1986) and DGE models
  • No secular trends in leisure

3
Annual Hours Worked Per Worker in the
U.S. (Maddisons data)
4
Annual Hours Worked in Business (Divided by
Civilian Non-Institutional Population Ages 16)
5
New Measures of Leisure Per Capita
  • New measure of per capita
  • Entire population
  • Comprehensive measure of non-leisure time
  • - Work-for-pay hours
  • - School hours
  • - Home production hours

6
How Should We Measure Per Capita?
7
Standard Measure of Per Capita
  • Civilian non-institutional population
  • total non-institutional
    population ages 16 and over
  • armed forces.
  • Justification?
  • Notion of available workforce

8
Why Not Use Total Population?
Theoretical Basis Standard model with explicit
population growth Choose consumption ct and
leisure lt to maximize
where Nt is total population
Empirical Basis The consumption of children is
counted in c. Why dont we count their leisure
in l?
9
Importance of Accounting for Children
  • Consider a model with perfect substitutability of
    consumption and leisure of adults and children in
    household utility.
  • Let
  • c1 per capita consumption by children,
    c2 per capita consumption by adults
  • h1 per capita hours worked by children,
    h2 per capita hours worked by adults
  • ? fraction of population that is children
  • The representative household maximizes
  • subject to
  • and h1, h2, c1, c2 ? 0.
  • If w1 lt w2, then it is optimal to set h1 0 and
  • Increase in the fraction of children leads to an
    increase in h2, hours per capita of adults.
  • Thus, adult time use is affected by the presence
    of dependents with lower productivity.

10
Population Ages 0-15 as a Fraction of Total
Population

11
Population Ages 65 as a Fraction of Total
Population
12
Comprehensive Measures ofNon-Leisure Time
  • Work for pay (including government)
  • Commuting time
  • School Hours
  • Home Production

13
What is Leisure?
  • Hawrylshyn (1971) distinguishes leisure from
    household work by defining household work
    activities as those economic services produced
    in the household and outside the market, but
    which could be produced by a third person hired
    on the market without changing the utility to
    members of the household.

14
Ratings of Activity Enjoyment 1985 (From
Robinson and Godbey Appendix O)
15
Accounting for Hours Worked for Pay
The standard RBC measure excludes hours worked in
government (civilian and military). Is that
important for trends?
16
Government Hours as a Fraction of Total Work
Hours

17
Measuring Total Hours
  • Includes private hours (establishment,
    self-employed, unpaid family workers) plus
    government hours
  • Use Kendrick data for early period
  • Use BLS private hours index upweighted by BEA
    full-time equivalent employment numbers

18
New Estimates of Annual Market Hours Per Worker
19
Commuting Time
  • Time diary estimates from 1965 2003 suggest
    commute times are a relatively constant 10 of
    hours worked.
  • Scant evidence early in the century
  • - Average commute distances for shorter
  • urban workers, farmers
  • - But modes of urban transportation were slower
  • - Hours per worker, days per week
  • Rodrigue (2004) argues time spent commuting for
    urban workers was relatively constant over 20th
    Century
  • We assume commute time is 10 of hours worked for
    entire century

20
Accounting for Hours Spent in School
21
School Enrollment Rates
22
Estimating School Hours
  • Annual school hours
  • (enrollment in grades K 8 ) (avg. days
    attended by enrollee) 5.5 hours
  • (enrollment in grades 9 - 12 ) (avg. days
    attended by enrollee) 7 hours
  • (enrollment in college) (fraction
    full-time)
  • 0.3 (fraction part-time) 165 days 8
    hours


23
Annual Per Capita Hours Spent on School for Ages
5-22
24
Hours Spent in School as a Fraction of Total
Market Work

25
Accounting for Hours Spent in Home Production
26
Conventional Wisdom
  • The diffusion of household utilities and
    appliances dramatically reduced the hours spent
    in household chores.

27
Estimating Home Production Hours
  • We use data from time diaries when possible,
    since they are considered the most reliable
    measure of both market work and home production
    hours
  • Strategy
  • gather time diary estimates by sex-age-employment
    status cells
  • interpolate between years for each cell
  • weight cell by fraction of population in that
    cell.


28
Estimates of Hours of Housework per Week by
Nonemployed Women Ages 18-64
29
Are the Early Studies Representative?
  • Samples were not nationally representative
  • Urban samples tended to have above average income
  • But most samples were rural, which had less
    access to electricity, market goods, etc.
  • Evidence suggests that poor urban households did
    not do more housework being poor meant being
    dirty, relied on bakery bread.
  • Bryant (1996) adjusts for non-representativeness.
    Our estimates are consistent with his.

30
Why Didnt the Diffusion of AppliancesReduce
Housework?
  • Appliances replaced low-wage immigrant labor
  • Decline in maiden aunts
  • of nonemployed women living in others house
    with no children of own 18 in 1900, 7.6 in
    1960.
  • Cross-section and time series studies on
    appliances more appliances lead to more
    household production output
  • Betty Friedan (1963) The Feminine Mystique
  • Mokyr (2000) Revolution in sanitation, germ
    theory of disease and nutrition theory increased
    demand for cleanliness just as appliances were
    diffusing


31
Estimates of Housework by Employment Sex
Category (ages 18-64)
32
Childrens Home Production
  • Estimates from the 1920s are similar to those
    from the 1980s
  • Ages 5-14 3 hours a week
  • Ages 15-17 5 hours a week

33
Average Weekly Hours of Housework of Adults
34
Hours Per Capita in Various Activities
35
Per Capita Market-Oriented Hours
36
Measuring Leisure
  • Time endowment is 24 hours per day, 365 days per
    year
  • Most personal care time ranks high on enjoyment
    index (sleeping, eating), so we do not subtract
    it from leisure
  • Personal care time is relatively constant at 75
    hours per week

37
Annual Leisure Hours Per Capita
38
Conclusions
  • New measures suggest leisure per capita now is
    about equal to leisure per capita in 1900
  • Our results are different from the standard ones
    because we track the leisure of the entire
    population and we dont count schooling as
    leisure.
  • Keynes prediction has not come true yet for the US
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