Preferences for consumption and leisure across countries

Worktimes differ across countries and over time. The economics literature usually explains these differences by financial incentives such as wages and taxes, assuming identical and constant preference for leisure versus consumption. Non-economic researchers recognize different attitude towards work across countries and over time and connect them to living standards. Recently, Ek (2021) uses an economic model and data to show preferences for leisure differ among OECD countries. We follow a similar approach to estimate preferences across developed and developing countries and find more significant differences in their preferences than among OECD countries and a stronger negative relationship between these preferences and per capita GDP. These results may provide another angle to better explain worktime differences and changes. We further investigate relations of the estimated preferences with growth and happiness. While we do not find a significant relationship of preferences with growth, we find a significant and negative one with happiness.