Mark Aguiar, Mark Bils, Kerwin Charles, and Erik Hurst write,
we explore the decline in work hours for young men since 2000. Using standard parameterizations, we show that the decline in hours for LEYM (both in absolutely and relative to all prime-age men) is inconsistent with a stable labor supply curve. We propose a new methodology that exploits detailed micro data on how individuals allocate their time away from work to infer how changes in leisure technology have altered labor supply. We find that changes in leisure technology for computer goods broadly, and video games in particular, shifted in the labor supply curve for LEYM by an amount between 10 and 25 percent of the observed decline in market work hours for prime age men and between 20 and 45 percent of the decline in market work hours for LEYM.
LEYM is less educated young men. Pointer from Tyler Cowen.
I suspect the effect of better video games is exaggerated. The impact of government food+housing aid is the big factor. Consider how quality of public housing + food has skyrocketed and any social stigmas have been removed.
Government housing used to mean “the projects” or some other horrible place to live. Government food used to mean blocks of cheese given to poor families with small children and food stamp paper books for payment that were embarrassing to use.
That has gradually changed.
Today, public housing offers nice, fancy housing, even in the most expensive neighborhoods. With today’s food stamps, you can comfortably shop at Whole Foods or other luxury options, with a convenient discrete payment card, and have money left over to sell for non-food spending. And it has expanded to support childless, single men.
In most US states, there are expensive neighborhoods that have completely priced out normal working class adults, but accommodate large numbers of adults who don’t even pretend to seek work?
And the social stigma around not working and receiving government food + housing has greatly diminished. The social stigma around working menial jobs has increased. Not that long ago, the idea of a fully grown able bodied man getting government food and housing assistance for himself was shamed. Today, that is normal.
In this circle, complaining about welfare recipients is very tacky and quickly dismissed. But it’s probably more true than ever before.
“In this circle, complaining about welfare recipients is very tacky and quickly dismissed. But it’s probably more true than ever before”
Massimo, don’t sweat it. This circle has always been prepared to criticize any demographic that contains “M’s”, more so if it they are “LE’s”, and especially now that Charles Murray has introduced them to the reality that it includes “W’s”.
Still no word on the decline of participation of females.
The obvious conclusion, drawn by anyone with a rudimentary understanding of macro is that we must implement larger USG budget deficits. Or NGDP level targeting. I can’t remember which, but to deny this is to, like, believe in phlogiston or something.
Thank you MG.
I actually read the entire Diamond Age book to understand Kling’s reference to Thetes and Vickies.