Over the past 35 years, entrepreneurs have significantly reduced their working hours, a trend surpassing the decline seen in regular workers and affecting all demographics and industries. Despite fewer hours, there isn't a corresponding rise in income per hour. This shift, especially notable among those previously working over 45 hours a week, is explained by diminishing marginal returns to additional work hours, influenced by changes in market competition. Additionally, economic inequality is highlighted by new cost-of-living measurements, revealing that lower-income households face higher inflation volatility and long-term price fluctuation impacts, particularly in essential expenses, deepening the gap between wealthier and poorer households. These insights are crucial for policy-making aimed at fostering economic growth and improving overall welfare.

Andrés Erosa, Universidad Carlos III de Madrid kindly acted as opponent.

Philipp will take up a position as Economist at the Monetary Policy Section of the Oesterreichische Nationalbank (the Austrian Central Bank).

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