Time Use and Macroeconomic Uncertainty

Matteo Cacciatore, Daniela Hauser and Stefano Gnocchi

No 31954, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study the effects of uncertainty on time use and their macroeconomic implications. Employing data from the American Time Use Survey and the Bureau of Labor Statistics, we document that heightened uncertainty increases housework and reduces market work hours, mildly impacting leisure. We then propose a model that quantitatively accounts for these estimates. We show that substitution between market and housework provides self-insurance to households, weakening precautionary savings. However, it also reduces aggregate demand, ultimately amplifying uncertainty's recessionary impact. Time reallocation can lead to higher inflation, particularly when uncertainty couples with policies redirecting time use towards housework (e.g., lockdown restrictions).

JEL-codes: E21 E32 J22 J23 (search for similar items in EconPapers)
Date: 2023-12
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Working Paper: Time Use and Macroeconomic Uncertainty (2023)
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