To work or not to work? Do people prefer leisure to work? Different preferences around the world. Dave Van Calster & Jonas Van Riel.

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Presentation transcript:

To work or not to work? Do people prefer leisure to work? Different preferences around the world. Dave Van Calster & Jonas Van Riel

Historical Evolution

Differences in economic evolution Hours of work Standard of living Poor Rich

Backward-bending supply of labour - Income effect: Higher wage, work less - Substitution effect: Higher wage, work more

Different preferences in different countries

Evolution Part-time Europe : 1) 40% prefer fewer hours over a higher pay 2) 70% of the part-time workers prefer part-time hours United States : Stronger preference for: 1) a higher pay 2) Full-time hours Part-time ’99 : 13% America, 15% France, 17% Germany, 23% U.K. and 30% Netherlands Conclusion : Europeans like leisure more than the Americans

Productivity, employment rate and net income per country

Happiness and unemployment per country + solutions Unemployment makes people unhappy and poor! Since ’70 upward trend in happiness, income increased much more  More money in rich economies does not make people happier Solutions: France: workweek maximum 35 hours.  Workers happier + extra jobs Money doesn’t buy happiness, it’s a precondition for it!