Leisure time and the sectoral composition of employment

Edgar Cruz and Xavier Raurich

Review of Economic Dynamics, 2020, vol. 38, 198-219

Abstract: We observe the following patterns in the US economy during the period 1965-2015: (i) the rise of the service sector, (ii) the increase in leisure time, and (iii) the increase in recreational services. To show the last pattern, we measure the fraction of the value added of the service sector explained by the consumption of recreational services and we show that it increases during this period. We explain these three patterns of structural change in a multisector growth model in which leisure time increases with income. As a consequence, the consumption of recreational services increases since they are consumed during leisure time. We show that the introduction of recreational services contributes to explain the rise of the service sector, inequality in leisure, and employment differences across countries caused by differences in income taxes. (Copyright: Elsevier)

Keywords: Sectoral composition; Leisure; Leisure inequality; Recreational services; Elasticity of substitution (search for similar items in EconPapers)
JEL-codes: O41 O47 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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DOI: 10.1016/j.red.2020.04.004

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