This paper documents trends in the allocation of time over the last 40 years using five decades of time-use surveys. It finds that leisure time has increased significantly in the United States between 1965 and 2003. For men, leisure increased by 7.9 hours per week, and for women, by 6.0 hours per week. This increase corresponds to roughly 5 to 10 additional weeks of vacation per year, assuming a 40-hour work week. The "consumption equivalent" of this leisure increase is valued at 8 to 9 percent of total 2003 U.S. consumption expenditures. The increase in leisure is attributed to a decline in market work hours for men and a decline in home production work hours for women. The paper also finds that leisure increased for various sub-samples of the population, with less-educated adults experiencing the largest increases. Additionally, it documents a growing "inequality" in leisure that mirrors the growing inequality in wages and expenditures, making welfare calculations based solely on the latter incomplete. The paper also analyzes changes in leisure by educational attainment and finds that both men and women with more than a high school education and those with a high school education or less increased leisure time between 1965 and 2003. However, the subsequent increase in leisure was greatest among less-educated adults. The cross-sectional distribution of leisure time has fanned out over the last 40 years, with the least-educated experiencing the largest gains in leisure. This growing inequality in leisure is the mirror image of the well-documented trends in income and expenditure inequality. The paper discusses the importance of understanding time allocation in economic analysis, noting that time allocation affects market labor supply and consumption. It also highlights the role of technology in determining the substitutability between time and goods in production. The paper uses a variety of measures to define leisure, including time spent on entertainment, socializing, active recreation, and general relaxation, as well as time spent on non-market production. The results show that leisure time has increased significantly for both men and women, with the increase in leisure being driven by a decline in market work hours for men and a decline in home production work hours for women. The paper also notes that the increase in leisure is not fully captured by traditional measures of market work hours, as these measures tend to over-report market work hours relative to time diaries. The paper concludes that the increase in leisure is an important factor in understanding economic trends and that further research is needed to fully understand the implications of these trends.This paper documents trends in the allocation of time over the last 40 years using five decades of time-use surveys. It finds that leisure time has increased significantly in the United States between 1965 and 2003. For men, leisure increased by 7.9 hours per week, and for women, by 6.0 hours per week. This increase corresponds to roughly 5 to 10 additional weeks of vacation per year, assuming a 40-hour work week. The "consumption equivalent" of this leisure increase is valued at 8 to 9 percent of total 2003 U.S. consumption expenditures. The increase in leisure is attributed to a decline in market work hours for men and a decline in home production work hours for women. The paper also finds that leisure increased for various sub-samples of the population, with less-educated adults experiencing the largest increases. Additionally, it documents a growing "inequality" in leisure that mirrors the growing inequality in wages and expenditures, making welfare calculations based solely on the latter incomplete. The paper also analyzes changes in leisure by educational attainment and finds that both men and women with more than a high school education and those with a high school education or less increased leisure time between 1965 and 2003. However, the subsequent increase in leisure was greatest among less-educated adults. The cross-sectional distribution of leisure time has fanned out over the last 40 years, with the least-educated experiencing the largest gains in leisure. This growing inequality in leisure is the mirror image of the well-documented trends in income and expenditure inequality. The paper discusses the importance of understanding time allocation in economic analysis, noting that time allocation affects market labor supply and consumption. It also highlights the role of technology in determining the substitutability between time and goods in production. The paper uses a variety of measures to define leisure, including time spent on entertainment, socializing, active recreation, and general relaxation, as well as time spent on non-market production. The results show that leisure time has increased significantly for both men and women, with the increase in leisure being driven by a decline in market work hours for men and a decline in home production work hours for women. The paper also notes that the increase in leisure is not fully captured by traditional measures of market work hours, as these measures tend to over-report market work hours relative to time diaries. The paper concludes that the increase in leisure is an important factor in understanding economic trends and that further research is needed to fully understand the implications of these trends.