Adjusting Labor along the Intensive MarginS

Jeff Biddle and Daniel S. Hamermesh ()
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Daniel S. Hamermesh: University of Texas at Austin

No 17162, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We expand the analysis of cyclical changes in labor demand by decomposing changes along the intensive margin into those in days/week and in hours/day. Using large cross sections of U.S. data, 1985-2018, we observe around ¼ of the adjustment in weekly hours occurring through changing days/week. There is no adjustment of days/week in manufacturing; but 1/3 of the adjustment outside manufacturing occurs through days/week. The desirability of bunched leisure implies that secular shifts away from manufacturing have contributed to increasing economic welfare.

Keywords: days; labor demand; work hours; recessions (search for similar items in EconPapers)
JEL-codes: E24 J21 J23 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2024-07
New Economics Papers: this item is included in nep-ltv
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Related works:
Working Paper: Adjusting Labor Along The Intensive Margins (2024)
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