Sunday, April 11, 2010

Work Harder, Make More Money...NOT!

A study by Dante DeAntonio uses data from the Current Employment Statistics -- a monthly survey of more than 400,000 U.S. business establishments -- gave estimates for employment, hours, and earnings for all 50 U.S. states.

Now that we can clearly see which states' employees work the most hours, we should be able to prove conclusively the equation T=$ (where T stands for "time" and $ stands for "money.")

Richard Florida did the math for The Atlantic and SURPRISE! There seems to be no correlation at all between hours worked and earnings. What he did find was a correlation between "human capital and economic development."

What does that mean?

Our analysis reinforces a simple fact that working smarter, and not working harder, is what brings higher earnings to states... more open and tolerant states are better able to compete for a wider range of talented and skilled workers across the board. And, smarter states not only generate higher earnings, they afford a greater level of happiness and well-being to their residents.

It's time to get over the notion that simply working harder brings wealth and economic development. The structure and composition of jobs matter greatly. At a time when job creation is at the top of the agenda, this is something policy-makers need to factor into their thinking about exactly what kinds of jobs we wish to create.

Read the full analysis at The Atlantic.