In this paper we propose a systematic way of examining the importance of the extensive and the intensive margins of labor supply in order to explain the overall movements in total hours of work over time. We show how informative bounds can be developed on each of these margins. We apply this analysis to the evolution of hours of work in the US, the UK, and France and show that both the extensive and intensive margins matter in explaining changes in total hours.
Figures. Employment rate, and Mean annual hours per worker
Authors
Richard Blundell
Richard is Co-Director of the Centre for the Microeconomic Analysis of Public Policy (CPP) and Senior Research Fellow at IFS.
Guy Laroque
Antoine Bozio
Antoine is a Research Fellow, an Associate Professor at the EHESS, and Director of the Institut des Politiques Publiques (IPP) in Paris.
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