Time Use and Macroeconomic Uncertainty / Matteo Cacciatore, Daniela Hauser, Stefano Gnocchi.

Format:

Book

Author/Creator:

Cacciatore, Matteo.

Contributor:

National Bureau of Economic Research.

Hauser, Daniela.

Gnocchi, Stefano.

Series:

Working Paper Series (National Bureau of Economic Research) no. w31954.

NBER working paper series no. w31954

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2023.

Summary:

We study the effects of uncertainty on time use and their macroeconomic implications. Employing data from the American Time Use Survey and the Bureau of Labor Statistics, we document that heightened uncertainty increases housework and reduces market work hours, mildly impacting leisure. We then propose a model that quantitatively accounts for these estimates. We show that substitution between market and housework provides self-insurance to households, weakening precautionary savings. However, it also reduces aggregate demand, ultimately amplifying uncertainty's recessionary impact. Time reallocation can lead to higher inflation, particularly when uncertainty couples with policies redirecting time use towards housework (e.g., lockdown restrictions).

Notes:

Print version record

December 2023.