The Income Effect in Operation

UBS releases its 2006 study of “Prices and Earnings”, which includes:

People in Asia work the longest hours – almost 50 days more per year than Western Europeans. Asian workers at least partially compensate for low purchasing power through longer working hours … Seoul has the highest, Paris the lowest working hours. Asian employees can at least partially compensate for low hourly wages through longer hours spent at work … An analysis of the historical data produced by the UBS Study of Prices and Earnings, shows that Europeans have reduced their working hours in the last 30 years in favor of more leisure time.

French real per capita GDP is near $30,000 per year, while South Korean real per capita GDP is around $20,000 per year. In other words, we may have evidence (as UBS notes) of the income effect in action. It seems a certain rightwing troll did not bother to read the UBS discussion before accusing the French of being lazy.