How Opposing Forces Keep Hours Per Person Relatively Constant

Very-long-run trends in hours: let's think. Higher wages incentivize more work. That and other higher income push toward People wanting to cut back on work hours. Finally, jobs are getting more pleasant. People will work longer at a nice job. Overall, these add up to no strong trend. Labor and positive tech shocks: let’s think. The very-long-run effect is like trend, With little change in people’s work hours. The capital stock is lower at first. Wages below their future level drag, Int’rest rates above their future level Push up. The two roughly cancel out. The bottom line: many a push and pull Net out to leave labor mostly the same.