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IZA Discussion Paper No. 17162
July 2024
Adjusting Labor along the Intensive MarginS

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 ΒΌ 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.

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Mark Fallak
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+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
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Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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