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The Decline of Drudgery and the Paradox of Hard Work Summary

We develop a theory that focuses on the general equilibrium and long-run macroeconomic consequences of trends in job utility. Given secular increases in job utility, work hours per capita can remain approximately constant over time even if the income effect of higher wages on labor supply exceeds the substitution effect. In addition, secular improvements in job utility can be substantial relative to welfare gains from ordinary technological progress. These two implications are connected by an equation ፟lowing from optimal hours choices: improvements in job utility that have a signi𓏊nt effect on labor supply tend to have large welfare effects.

Author : Brendan Epstein, Miles S. Kimball

Publisher : Board of Governors of the Federal Reserve System

Published : 2014

ISBN-10 :

ISBN-13 :

Number of Pages : 47 Pages

Language : en



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