Thursday, June 29, 2006

Wages and Work Hours

Here is an intriguing fact from a new NBER study:
In 1983, the most poorly paid 20 percent of workers were more likely to put in long work hours than the top paid 20 percent. By 2002, the best-paid 20 percent were twice as likely to work long hours as the bottom 20 percent.
That is, wages and hours worked went from being negatively correlated to being positively correlated. This may be an important piece of the puzzle of rising income inequality.