On productivity: Workers in low-income countries work longer (for less)

You probably knew that already, but here is the data from Bick, Fuchs-Schundeln, and Lagakos in the AER:

This paper builds a new internationally comparable database of hours worked to measure how hours vary with income across and within countries. We document that average hours worked per adult are substantially higher in low-income countries than in high-income countries. The pattern of decreasing hours with aggregate income holds for both men and women, for adults of all ages and education levels, and along both the extensive and intensive margin. Within countries, hours worked per worker are also decreasing in the individual wage for most countries, though in the richest countries, hours worked are flat or increasing in the wage. One implication of our findings is that aggregate productivity and welfare differences across countries are larger than currently thought.Screen Shot 2018-01-24 at 7.57.32 AM

… Our main finding is that average hours worked per adult are substantially higher in low-income countries (the bottom third of the world income distribution) than in high-income countries (the top third). In low-income countries, adults work 28.5 hours per week on average, compared to 19.0 hours per week in high-income countries.

Read the whole thing here (gated). Here is the ungated version.

Unlocking productivity gains is a challenge to policymakers in low-income states:

One implication of our findings is that aggregate labor productivity and TFP differences across countries are larger than previously thought. Moreover, ignoring hours worked also leads to misleading conclusions about the extent of welfare differences across countries. Put simply, residents of the poorest countries are not only consumption poor, but leisure poor as well.