Bundling Time and Goods: Implications for the Dispersion in Hours Worked

Lei Fang, Anne Hannusch () and Pedro Silos

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

Abstract: We document that the dispersion in hours worked is large in the cross-section. We study the quantitative effect of wage dispersion on hours dispersion using a model in which households combine their time and market goods to produce consumption activities. We estimate several models with different numbers of activities on the paired expenditures and time use data by consumption activity. The estimated model can account for 25%-87% of the dispersion in hours worked over 2003-2018 with the model incorporating more activities generating more dispersion. The substitutability between goods and time within an activity and across activities is key to the result.

Keywords: Time Allocation; Consumption Expenditures; Hours Dispersion; Elasticity of Substitution (search for similar items in EconPapers)
JEL-codes: D11 E21 J22 (search for similar items in EconPapers)
Pages: 37
Date: 2022-04
New Economics Papers: this item is included in nep-lma and nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.crctr224.de/research/discussion-papers/archive/dp346 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bon:boncrc:crctr224_2022_346

Access Statistics for this paper

More papers in CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany Kaiserstr. 1, 53113 Bonn , Germany.
Bibliographic data for series maintained by CRC Office ().