Measuring Trends in Leisure: The Allocation of Time over Five Decades
Mark Aguiar, Federal Reserve Bank of Boston / Erik Hurst, University of Chicago, NBER

Abstract

In this paper, we use five decades of time-use surveys to document trends in the allocation of time. We find that a dramatic increase in leisure time lies behind the relatively stable number of market hours worked (per working-age adult) between 1965 and 2003. Specifically, we show that leisure for men increased by 6 8 hours per week (driven by a decline in market work hours) and for women by 4-8 hours per week (driven by a decline in home production work hours). This increase in leisure corresponds to roughly an additional 5 to 10 weeks of vacation per year, assuming a 40-hour work week. Alternatively, the “consumption equivalent” of the increase in leisure is valued at 8 to 9 percent of total 2003 U.S. consumption expenditures. We also find that
leisure increased during the last 40 years for a number of sub-samples of the population, with less educated adults experiencing the largest increases. Lastly, we document a growing “inequality” in leisure that is the mirror image of the growing "inequality" of wages and expenditures, making welfare calculation based solely on the latter series incomplete.

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