Adjusting Labor Along The Intensive Margins

Daniel Hamermesh and Jeff Biddle

No 32752, NBER Working Papers from National Bureau of Economic Research, Inc

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 1/4 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.

JEL-codes: E24 J21 J23 (search for similar items in EconPapers)
Date: 2024-07
Note: LS
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Working Paper: Adjusting Labor along the Intensive MarginS (2024)
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