The economics of public holidays

As we celebrate Human Rights Day, I am wondering, what is the economic impact of a holiday? On the one hand, there is a decline in the production of certain goods and services – the building sites in our street are quiet today. On the other hand, some people took a short vacation over the long weekend and spent money on fuel, accommodation, and restaurant meals. Nor is it so easy to say that countries with fewer holidays are more productive, or that they grow faster. There are other factors that influence this. Recent international research, however, gives us some insight into the issues. * The Economics Minute is supported by the NWU Business School.