Time Use During Recessions

Mark A. Aguiar, Erik Hurst, Loukas Karabarbounis

NBER Working Paper No. 17259
Issued in July 2011
NBER Program(s):Economics of Aging, Economic Fluctuations and Growth, Labor Studies, Public Economics

We use data from the American Time Use Survey (ATUS), covering both the recent recession and the pre-recessionary period, to explore how foregone market work hours are allocated to other activities over the business cycle. Given the short time series, it is hard to distinguish business cycle effects from low frequency trends by simply comparing time spent on a given category prior to the recession with time spent on that category during the recession. Instead, we identify the business cycle effects on time use using cross state variation with respect to the severity of the recessions. We find that roughly 30% to 40% of the foregone market work hours are allocated to increased home production. Additionally, 30% of the foregone hours are allocated to increased sleep time and increased television watching. Other leisure activities absorb 20% of the foregone market work hours. We use our evidence from the ATUS to calibrate and test the predictions of workhorse macroeconomic models with home production. We show that the quantitative implications of these models regarding the allocation of time over the business cycle matches reasonably well the actual behavior of households.

A non-technical summary of this paper is available in the November 2011 NBER Digest.  You can sign up to receive the NBER Digest by email.

Acknowledgments

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Document Object Identifier (DOI): 10.3386/w17259

Published: “Time Use During the Great Recession ,” (with Erik Hurst and Loukas Karabarbounis ), American Economic Review , August 2013 .

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