Post by rmarks1 on May 15, 2014 22:08:05 GMT -5
I thought this was interesting. It is a complete reversal of what was true in past centuries.
Bob
FOR most of human history rich people had the most leisure. In “Downton Abbey”, a drama about the British upper classes of the early 20th century, one aloof aristocrat has never heard of the term “weekend”: for her, every day is filled with leisure. On the flip side, the poor have typically slogged. Hans-Joachim Voth, an economic historian at the University of Zurich, shows that in 1800 the average English worker laboured for 64 hours a week. “In the 19th century you could tell how poor somebody was by how long they worked,” says Mr Voth.
In today’s advanced economies things are different. Overall working hours have fallen over the past century. But the rich have begun to work longer hours than the poor. In 1965 men with a college degree, who tend to be richer, had a bit more leisure time than men who had only completed high school. But by 2005 the college-educated had eight hours less of it a week than the high-school grads. Figures from the American Time Use Survey, released last year, show that Americans with a bachelor’s degree or above work two hours more each day than those without a high-school diploma. Other research shows that the share of college-educated American men regularly working more than 50 hours a week rose from 24% in 1979 to 28% in 2006, but fell for high-school dropouts. The rich, it seems, are no longer the class of leisure.
There are a number of explanations. One has to do with what economists call the “substitution effect”. Higher wages make leisure more expensive: if people take time off they give up more money. Since the 1980s the salaries of those at the top have risen strongly, while those below the median have stagnated or fallen. Thus rising inequality encourages the rich to work more and the poor to work less.
The “winner-takes-all” nature of modern economies may amplify the substitution effect. The scale of the global market means businesses that innovate tend to reap huge gains (think of YouTube, Apple and Goldman Sachs). The returns for beating your competitors can be enormous. Research from Peter Kuhn of the University of California, Santa Barbara, and Fernando Lozano of Pomona College shows that the same is true for highly skilled workers. Although they do not immediately get overtime pay for “extra” hours, the most successful workers, often the ones putting in the most hours, may reap gains from winner-takes-all markets. Whereas in the early 1980s a man working 55 hours a week earned 11% more than a man putting in 40 hours in the same type of occupation, that gap had increased to 25% by the turn of the millennium.
www.economist.com/news/finance-and-economics/21600989-why-rich-now-have-less-leisure-poor-nice-work-if-you-can-get-out
In today’s advanced economies things are different. Overall working hours have fallen over the past century. But the rich have begun to work longer hours than the poor. In 1965 men with a college degree, who tend to be richer, had a bit more leisure time than men who had only completed high school. But by 2005 the college-educated had eight hours less of it a week than the high-school grads. Figures from the American Time Use Survey, released last year, show that Americans with a bachelor’s degree or above work two hours more each day than those without a high-school diploma. Other research shows that the share of college-educated American men regularly working more than 50 hours a week rose from 24% in 1979 to 28% in 2006, but fell for high-school dropouts. The rich, it seems, are no longer the class of leisure.
There are a number of explanations. One has to do with what economists call the “substitution effect”. Higher wages make leisure more expensive: if people take time off they give up more money. Since the 1980s the salaries of those at the top have risen strongly, while those below the median have stagnated or fallen. Thus rising inequality encourages the rich to work more and the poor to work less.
The “winner-takes-all” nature of modern economies may amplify the substitution effect. The scale of the global market means businesses that innovate tend to reap huge gains (think of YouTube, Apple and Goldman Sachs). The returns for beating your competitors can be enormous. Research from Peter Kuhn of the University of California, Santa Barbara, and Fernando Lozano of Pomona College shows that the same is true for highly skilled workers. Although they do not immediately get overtime pay for “extra” hours, the most successful workers, often the ones putting in the most hours, may reap gains from winner-takes-all markets. Whereas in the early 1980s a man working 55 hours a week earned 11% more than a man putting in 40 hours in the same type of occupation, that gap had increased to 25% by the turn of the millennium.
www.economist.com/news/finance-and-economics/21600989-why-rich-now-have-less-leisure-poor-nice-work-if-you-can-get-out
Bob
lol...before I left work last night I told my friend that the loan I was working was blowing my mind. I think my mind might have even left because I had no desire to finish what I was doing after wading thru his massive tax returns and every possible schedule a person could have 25 freaking times. I bet this guy has NO time for leisure.
