Generative AI and the Reallocation of Time: Productivity, Leisure, and Fulfilling Work
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arXiv
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| Format: | Preprint |
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2026
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| _version_ | 1866910021143494656 |
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| author | Suh, Donghyun Oh, Samil |
| author_facet | Suh, Donghyun Oh, Samil |
| contents | Using a representative survey of Korean workers, we provide evidence on the adoption of Generative AI (GenAI) and how GenAI reallocates time at work. We find that 51.8\% of workers use GenAI for work and GenAI reduces working time by 3.8\%. However, these gains may not materialize in aggregate productivity statistics yet: the correlation between time savings and output changes is near zero. We show this disconnect arises because workers capture efficiency gains primarily as on-the-job leisure, rather than increasing their output. These findings suggest that standard productivity measures may understate AI's impact by missing non-pecuniary welfare channels. |
| format | Preprint |
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arxiv_https___arxiv_org_abs_2602_12695 |
| institution | arXiv |
| publishDate | 2026 |
| record_format | arxiv |
| spellingShingle | Generative AI and the Reallocation of Time: Productivity, Leisure, and Fulfilling Work Suh, Donghyun Oh, Samil General Economics Economics Using a representative survey of Korean workers, we provide evidence on the adoption of Generative AI (GenAI) and how GenAI reallocates time at work. We find that 51.8\% of workers use GenAI for work and GenAI reduces working time by 3.8\%. However, these gains may not materialize in aggregate productivity statistics yet: the correlation between time savings and output changes is near zero. We show this disconnect arises because workers capture efficiency gains primarily as on-the-job leisure, rather than increasing their output. These findings suggest that standard productivity measures may understate AI's impact by missing non-pecuniary welfare channels. |
| title | Generative AI and the Reallocation of Time: Productivity, Leisure, and Fulfilling Work |
| topic | General Economics Economics |
| url | https://arxiv.org/abs/2602.12695 |