In the last 50 years the gap in labour productivity between Europe and the US has narrowed considerably with estimates in 2005 suggesting a EU-US labour productivity gap of about 5 per cent. Yet, average per capita income in the EU is still about 30% lower than in the US. This persistent gap in income per capita can be almost entirely explained by Europeans working less than Americans.
Why do Europeans work so little compared to Americans? What do they do with their spare time outside work? Can they be induced to work more without reducing labour productivity? If so, how? And what is the effect on well-being if policies are created to reward paid work as opposed to other potentially socially valuable activities, like childbearing? More broadly, should the state interfere at all when it comes to bargaining over working hours? This volume explores these questions and many more in an attempt to understand the changing nature of the hours worked in the USA and EU, as well as the effects of policies that impose working hour reductions.

Responding to the most recent global challenges by analysing data from new events, and developing new policy examples, the eighth edition of Macroeconomics: A European Text continues to provide a comprehensive and modern analysis of macroeconomic theories. While retaining their focus on those features that characterise the European economy, the authors explore matters surrounding the global financial crisis, the European debt crisis, and the most recent effects of the Covid-19 pandemic on both labour supply and consumption. Students are supported throughout with real-life case studies, which provide rich and qualitative examples, helping them both to connect with the concepts and policies presented and to appreciate how economics works in practice. The authors encourage students to stretch their understanding further by presenting them with a set of essay questions at the end of each chapter, motivating them to think more critically. The eighth edition is available for students and institutions to purchase in a variety of formats and is supported by online resources. The e-book offers a mobile experience and convenient access along with self-assessment activities, hyperlinked further reading functionality tools, navigation features, and links that offer extra learning support: www.oxfordtextbooks.co.uk/ebooks Online student resources supporting the book include: Video walkthroughs on trickier concepts for chapters 3, 4, 6, 8, 11, 12, 13, 16, and 18 Sample exam questions Multiple choice questions Review questions Web appendices Web links Online lecturer resources supporting the book include: Power Point slides Excel based exercises for macroeconomic modelling Lecture plans Solutions to end-of-chapter exercises Test bank