Type | Working Paper |
Title | How Do Average Hours Worked Vary with Development? Cross-Country Evidence and Implications |
Author(s) | |
Publication (Day/Month/Year) | 2015 |
URL | http://www.wiwi.uni-frankfurt.de/Professoren/fuchs/staff/fuchs/paper/BFL_Oct_16_2015.pdf |
Abstract | How do average hours worked vary across the world income distribution? To answer this question, we build a new internationally comparable database of hours worked covering countries of all income levels. We document that average hours worked per adult are substantially higher in low-income countries than in high-income countries. This pattern is shaped by differences along both the extensive margin (employment rates) and intensive margin (hours per employed), with the former being quantitatively more important than the latter. Two important implications of our findings are that both labor productivity and welfare differences across poor and rich countries are substantially larger than suggested by GDP-per-capita differences. |