Dissecting the Decline in Average Hours Worked in Europe
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Summary:
Three years after the COVID-19 crisis, employment and total hours worked in Europe fully recovered, but average hours per worker did not. We analyze the decline in average hours worked across European countries and find that (i) it is not cyclical but predominantly structural, extending a long-term trend that predates COVID-19, (ii) it mainly reflects reduced hours within worker groups, not a compositional shift towards lower-hours jobs and workers, (iii) men—particularly those with young children—and youth drive this drop, (iv) declines in actual hours match declines in desired hours. Policy reforms could help involuntary parttimers and women with young children raise their actual hours towards desired levels, but the aggregate impact on average hours would be limited to 0.5 to 1.5 percent. Overall, there is scant evidence of slack at the intensive margin in European labor markets, and the trend fall in average hours worked seems unlikely to reverse.
Series:
Working Paper No. 2024/002
Subject:
Gender Labor Labor force participation Labor markets Labor supply Population and demographics Women
Frequency:
regular
English
Publication Date:
January 12, 2024
ISBN/ISSN:
9798400261183/1018-5941
Stock No:
WPIEA2024002
Format:
Paper
Pages:
44
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