This article examines why hours worked in the United States have risen for the last thirty years. This increase has been contrasted by Prescott and Blanchard to the European experience of falling hours worked. Four basic explanations of this divergence are combined in a reduced form model of...

Individual US data are merged with aggregate data by state for the US and used to estimate the external benefits of education. Aggregate state-wide variables used are the average level of education and per capita physical capital for each state. Individual variables used are each working adult's...