This Labor Day, Much of America Will Be . . . Laboring

So do we benefit at all from working so much more than our developed peers?  Left-leaning economists think not. TIME investigated  the issue last year, quoting CEPR economist Jason Schmitt who argued the  macroeconomic effect of mandatory paid time off is “actually pretty small,” and  that ”It’s very hard to say that those policies are connected to any kind  of a reduction in economic performance.”

But does this make sense? If employers are required to give a worker a lot of  time off, that worker is going to produce less. All else equal, this will make  the worker less valuable to an employer, and lower his pay. In this time of  over-indebtedness, both among citizens and the government, it hardly makes sense  to enact restrictions on how much people are allowed to work, as it’s only  through work that we’ll lower these debts.

That being said, there is evidence that countries that have higher paid time  off requirements actually work more efficiently than workers in America do. Take  Belgium for example, which requires a whopping 30 days of paid time off. Though  Belgium’s output per person was  just 71% of America’s in 2012,  its output per hour  worked was 100.5% of America’s. In other words, when  Belgian workers are on the job, they’re slightly more efficient than  Americans. Then again, Belgium consistently has a higher unemployment rate than  the U.S., which may mean that its least efficient workers simply can’t find a  job at all.

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