Global Working Hours

This paper uses labor force surveys from 160 countries to build a new microdatabase on hours worked covering 97% of the world population in cross section. We also construct time series spanning over 20 years in 86 countries. Hours worked per adult are slightly bell-shaped with GDP per capita but weakly correlated with development overall. Hours worked by the young (aged 15-19) and elderly (aged 60+) decline with development, driven by growing school attendance and public pension coverage. Hours worked among prime-age adults (aged 20-59) are mildly bell-shaped with development for men while they are increasing for women. The fall in male hours in middle-to-higher income countries is driven by reduced hours per worker and is offset by increases in female labor force participation. These two forces have exactly compensated each other in many countries, leading to a remarkable long-run stability of prime-age hours worked. Labor taxes are strongly negatively correlated with prime-age hours worked both in international comparisons and overtime within countries. Controlling for government transfers only partly reduces the link between labor taxes and prime-age hours, ruling out substitution and income effects on labor supply as the only driver. Controlling for working hours regulations and the size of the formal sector eliminates this link, suggesting that regulations also play a large role in reducing intensive hours in higher-income countries.