The decline of drudgery and the paradox of hard work

That is a new paper (pdf) by Brendan Epstein and Miles S. Kimball, the abstract is here:

We develop a theory that focuses on the general equilibrium and long-run macro-economic consequences of trends in job utility. Given secular increases in job utility, work hours per capita can remain approximately constant over time even if the income effect of higher wages on labor supply exceeds the substitution effect. In addition, secular improvements in job utility can be substantial relative to welfare gains from ordinary technological progress. These two implications are connected by an equation flowing from optimal hours choices: improvements in job utility that have a significant effect on labor supply tend to have large welfare effects.

I view this hypothesis as consistent with my view that we should be utility optimists but revenue pessimists.  Here is a closely related paper I once wrote with Alex.

The pointer is from Claudia Sahm.


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