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The Employment Effects of a Shorter Working Week

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Author Info
Booth, Alison
Schiantarelli, Fabio

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Abstract

Labor organizations currently argue that reducing the standard working week will help lower the high unemployment of the 1980s. Opponents maintai n that this will increase labor costs, and therefore not alleviate un employment. This paper analyzes the employment effects of a cut in ho urs, using the monopoly union and efficient bargaining models of the union and firm. Under various developments of the models, the results are quite consistent: a reduction in hours has employment effects th at are at best ambiguous and very often negative. A puzzle remains as to why trade unions are pressing for shorter hours. Copyright 1987 by The Review of Economic Studies Limited.

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Publisher Info
Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 54 (1987)
Issue (Month): 214 (May)
Pages: 237-48
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Handle: RePEc:bla:econom:v:54:y:1987:i:214:p:237-48

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  1. Thomas Moutos & William Scarth, 2000. "Work-Sharing: an Efficiency-Wage Analysis," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  2. Jennifer Hunt, 1996. "Has Work-Sharing Worked in Germany?," NBER Working Papers 5724, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Giacomo Corneo, 1995. "Distributional implications of a shorter working week: An unpleasant note," Journal of Economics, Springer, vol. 62(1), pages 25-31, February. [Downloadable!] (restricted)
  4. Jennifer Hunt, 1996. "The Response of Wages and Actual Hours Worked to the Reductions of Standard Hours," NBER Working Papers 5716, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Terry J. Fitzgerald, 1998. "Reducing working hours: a general equilibrium analysis," Working Paper 9801, Federal Reserve Bank of Cleveland. [Downloadable!]
  6. François Contensou & Radu Vranceanu, 1998. "A model of working time under utility competition in the labor market," Journal of Economics, Springer, vol. 67(2), pages 145-166, June. [Downloadable!] (restricted)
  7. Gustavo Gonzaga & Naércio Aquino Menezes Filho & José Márcio Camargo Author Email: jcamargo@econ.puc-rio.br, 2002. "Os efeitos da redução da jornada de trabalho de 48 para 44 horas semanais em 1988," Textos para discussão 458, Department of Economics PUC-Rio (Brazil). [Downloadable!]
  8. S. Erbaş & Chera Sayers, 2001. "Can a Shorter Workweek Induce Higher Employment? Mandatory Reductions in the Workweek and Employment Subsidies," International Tax and Public Finance, Springer, vol. 8(4), pages 485-509, August. [Downloadable!] (restricted)
  9. Noritaka Kudoh & Masaru Sasaki, 2007. "Employment and Hours of Work," Discussion Papers in Economics and Business 07-35, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP). [Downloadable!]
    Other versions:
  10. Regt,E,de, 1999. "Wage Bargaining, Working Time and Unemployment," Research Memoranda 006, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
  11. Sven Wehke, 2007. "Union Wages, Hours of Work and the Effectiveness of Partial Coordination Agreements," FEMM Working Papers 07019, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management. [Downloadable!]
    Other versions:
  12. Marimon, Ramon & Zilibotti, Fabrizio, 1999. "Employment and Distributional Effects of Restricting Working Time," CEPR Discussion Papers 2127, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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