How Does Leisure Time Affect Production Efficiency? Evidence from China,Japan, and the US

Labor efficiency is a central concept in economics. Although investigators have studied the influence of some variables (e.g., education time and physical capital) on labor efficiency, most studies overlook the impact of leisure time. This investigation examines the relationship between leisure time and labor efficiency in the world’s three largest economies: China, the US and Japan. Results revealed a significant correlation between leisure time and labor efficiency, and demonstrate that active leisure participation can improve productivity. The findings also demonstrate that, in contrast to the US and Japan, China, as a typical developing country, has seldom seen an apparent positive effect of leisure time on efficiency, which may partially explained by the type of leisure participation (active or passive).