Konferenzbeitrag
Technological Progress, the Supply of Hours Worked, and the Consumption-Leisure Complementarity
At least since 1870 hours worked per worker declined and real wages increased in many of today’s industrialized countries. The dual nature of technological progress in conjunction with a consumption-leisure complementarity explains these stylized facts. Technological progress drives real wages up and expands the amount of available consumption goods. Enjoying consumption goods increases the value of leisure. Therefore, individuals demand more leisure and supply less labor. This mechanism appears in an OLG-model with two-period lived individuals equipped with per-period utility functions of the generalized log-log type proposed by Boppart-Krusell (2016). The optimal plan is piecewise defined and hinges on the wage level. Technological progress moves a poor economy out of a regime with low wages and an inelastic supply of hours worked into a regime where wages increase further and hours worked continuously decline.
- Language
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Englisch
- Bibliographic citation
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Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2018: Digitale Wirtschaft - Session: Growth I ; No. A04-V2
- Classification
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Wirtschaft
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Time Allocation and Labor Supply
Technological Change: Choices and Consequences; Diffusion Processes
One, Two, and Multisector Growth Models
- Subject
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technological change
capital accumulation
endogenous labor supply
OLG-model
- Event
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Geistige Schöpfung
- (who)
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Irmen, Andreas
- Event
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Veröffentlichung
- (who)
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ZBW - Leibniz-Informationszentrum Wirtschaft
- (where)
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Kiel, Hamburg
- (when)
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2018
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Konferenzbeitrag
Associated
- Irmen, Andreas
- ZBW - Leibniz-Informationszentrum Wirtschaft
Time of origin
- 2018
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Why do BLS hours series tell different stories about trends in hours worked?
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V. Leisure hours
Bargaining frictions and hours worked
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Persistence and cycles in US hours worked
Persistence and cycles in US hours worked
Panel Tests for Unit Roots in Hours Worked
Hours Worked of the Self-Employed and Agglomeration
Why do BLS hours series tell different stories about trends in hours worked?
Why do bls hours series tell different stories about trends in hours worked?
Productivity, taxes, and hours worked in Spain: 1970-2015