Leisure Luxuries and the Labor Supply of Young Men

Citation:

Aguiar, Mark, et al. “Leisure Luxuries and the Labor Supply of Young Men”. Working Paper: n. pag. Print.

Abstract:

Younger men, ages 21 to 30, exhibited larger declines in work hours over the last fifteen years than older men or women. Over the same period, time-use data show that younger men distinctly shifted their leisure to video gaming and other recreational computer activities. We propose a framework to answer whether improved leisure technology played a role in reducing younger men's labor supply. The starting point is a leisure demand system that parallels that often estimated for consumption expenditures.  We show that total leisure demand is especially sensitive to innovations in leisure luxuries, that is, activities that display a disproportionate response to changes in total leisure time.  We estimate that gaming/recreational computer use is distinctly a leisure luxury for younger men. Moreover, we calculate that innovations to gaming/recreational computing can justify on the order of half the increase in leisure for younger men over the past fifteen years, and 23 to 46 percent of their decline in market hours. 

Last updated on 07/05/2017