and show some basic facts about hours worked in the United States and Europe. [***Richard Rogerson, “Understanding Differences in Hours Worked,” Review of Economic Dynamics 9 (2006): 365–409.***]shows how hours worked in a number of different European countries compare to hours worked in the United States. More precisely, it shows the total hours worked by individuals between 15 and 64 years old divided by the number of people in that age group. The table does not distinguish by employment status: all working age people are counted, not just employed people.
Three of the largest European countries—France, Germany, and Italy—average less than 75 percent of the hours worked in the United States. Part of this difference is due to longer holidays in Europe, and part is due to the fact that the workweek in Europe is typically shorter. Because the table counts all working age people, the higher unemployment rate in Europe also contributes to the difference.
looks at the hours worked in various countries over the 40 years from 1970 to 2009. The measure of hours is calculated in the same manner as . Average hours worked have declined significantly in most of these countries. Meanwhile average hours worked in the United States have been more or less flat over these four decades. As a result, hours worked are now significantly higher in the United States than in any of these countries.[*** The data come from OECD (2010), "Hours Worked: Average annual hours actually worked",OECD Employment and Labour Market Statistics (database). doi: 10.1787/data00303-en (Accessed on 18 October 2011)http://scholar.harvard.edu/alesina/files/work_and_leisure_in_the_u.s._and_europe.p df. Figure 1 shows a similar pattern of divergence in hours worked for employed people, though the hours worked per employed person has declined in all countries over this period.***]
Research by the Nobel Prize–winning economist Edward Prescott paints a similar picture. He reports that from 1993 to 1996, the hours worked per person in France were about 68 percent of the level in the United States. In addition, US output per person was much higher than in Europe. Prescott explains this difference based on the number of hours worked, not by differences in output per hour worked. In other words, the United States is richer, not because it is more productive but simply because people work more.
- 825 reads
