US Working Hours Decline, Medicaid Impact

The United States is experiencing a notable decline in working hours, particularly among men, a trend that began in the 2010s. This phenomenon, which goes against common intuition, has significant implications for the U.S. economy and federal budget. While the United States still works more than most European nations, the gap is closing as Europeans have started working more. One contributing factor identified is the expansion of United States — Medicaid in the United States, which can act as a disincentive to work due to income limits. This decline in labor force participation, especially among men, coupled with an aging population, raises concerns about the sustainability of the welfare state and future tax revenues in the United States, contrasting with Europe's more positive trend in working hours.