NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Pecuniary Incentives to Work in the U.S. during World War II

Casey B. Mulligan

NBER Working Paper No. 6326
Issued in December 1997
NBER Program(s):   ME

It is argued that changes in workers' budget sets cannot explain the dramatic increases in" civilian work in the U.S. during World War II. Although money wages grew during the period wartime after-tax real wages were lower than either before or after the war. Evidence from the" 1940's also appears to be inconsistent with other pecuniary explanations such as wealth effects of" government policies, intertemporal substitution induced by asset prices and changes in the nonmarket price of time. Although untested and relatively undeveloped nonpecuniary models of behavior are tempting explanations for wartime work."

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Document Object Identifier (DOI): 10.3386/w6326

Published: Journal of Political Economy, Vol. 106, no. 5 (October 1998): 1033-1077.

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