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Get a life – are you working too hard?

I remember years ago reading that technology would make our lives easier and and shorten the work week.

Some said the average worker would be so productive that we’d only have to work 15 – 20 hours a week.phone changes years

But for most of us that doesn’t seem to have happened it seems that we’re working harder and longer . Or are we?

Last year The Economist  reported data from the OECD, a club of rich countries, which tell a more positive story.

They say:

For the countries for which data are available the vast majority of people work fewer hours than they did in 1990:

And it seems that more productive—and, consequently, better-paid—workers put in less time in at the office.

The graph below shows the relationship between productivity (GDP per hour worked) and annual working hours:

The Greeks are some of the most hardworking in the OECD, putting in over 2,000 hours a year on average.

Germans, on the other hand, are comparative slackers, working about 1,400 hours each year. But German productivity is about 70% higher.

One important question concerns whether appetite for work actually diminishes as people earn more. There are countervailing effects.

On the one hand, a higher wage raises the opportunity cost of leisure time and should lead people to work more.

On the other hand, a higher income should lead a worker to consume more of the stuff he or she enjoys, which presumably includes leisure.

Some research shows that higher pay does not, on net, lead workers to do more.

Rather, they may work less. A famous study by Colin Camerer and colleagues, which looked at taxi drivers, reached a controversial conclusion. The authors suggested that taxi drivers had a daily income “target”, and that:

When wages are high, drivers will reach their target more quickly and quit early; on low-wage days they will drive longer hours to reach the target.

Alternatively, the graph above might suggest that people who work fewer hours are more productive. This idea is not new. Adam Smith reckoned that

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[T]he man who works so moderately as to be able to work constantly, not only preserves his health the longest, but in the course of the year, executes the greatest quantity of works.

There are aberrations, of course. Americans are relatively productive and work relatively long hours.

And within the American labour force hours worked among the rich have risen while those of the poor have fallen.

But a paper released yesterday by the New Zealand Productivity Commission showed that even if you work more hours, you do not necessarily work better.

The paper made envious comparisons between Kiwis and Australians—the latter group has more efficient workers.

So maybe we should be more self-critical about how much we work.

Working less may make us more productive.

And, as Russell argued, working less will guarantee “happiness and joy of life, instead of frayed nerves, weariness, and dyspepsia”.

 



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Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'Get a life – are you working too hard?' have 4 comments

  1. Avatar for Property Update

    November 17, 2013 @ 8:06 pm Matthew T

    Hello Michael

    Great article I am in the working force, and I
    Was racking up 91 hours a week only earning about 16 to 17.50 an hour working 3 jobs!! Finding not much time to do other things because of the commitment I have put my self in, having 3 investment properties and a PPOR the low wage is a strain, you are more tied, grumpy and my health is not as good. But I am not a smart person were I can get a high wage! You are right the productivity in my work I very noticeable but I have the commitments ,, on the low wage I would not have been able to squire 4 properties with out the long hard yards!!! Cheers Matt

    Reply

    • Avatar for Property Update

      November 17, 2013 @ 8:18 pm Michael Yardney

      Thanks for your comment Matt

      That’s an inspiring story

      Reply

  2. Avatar for Property Update

    December 31, 2014 @ 5:46 pm Reza

    When you work so hard pushing against a brick wall, the wall won’t go anywhere and neither would you.
    It appears that we should work smart, just hard work won’t help, so I believe.
    It doesn’t necessary need us to be super smart, just we should use our common sense and not to waste our energies inefficiently.
    Happy New Year everyone.
    Reza

    Reply


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