Template-Type: ReDIF-Paper 1.0
Title: Bundling Time and Goods: Implications for the Dispersion in Hours Worked
Author-Name: Lei Fang
Author-Email: lei.fang@atl.frb.org
Author-Name: Anne Hannusch
Author-Email: hannusch@uni-mannheim.de
Author-Name: Pedro Silos
Author-Email: pedro.silos@temple.edu

Classification-JEL: J22, E21, D11
Keywords: Time Allocation, Consumption Expenditures,Hours Dispersion, Elasticity of Substitution

Abstract: We document that the dispersion in hours worked is large in the cross-section. We
study the quantitative effect of wage dispersion on hours dispersion using a model in
which households combine their time and market goods to produce consumption activities.
We estimate several models with different numbers of activities on the paired
expenditures and time use data by consumption activity. The estimated model can account
for 25%-87% of the dispersion in hours worked over 2003-2018 with the model
incorporating more activities generating more dispersion. The substitutability between
goods and time within an activity and across activities is key to the result.

Note: 
Length: 37
Creation-Date: 2022-04
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp346
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2022_346