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The Employment Effects of Shorter Working Hours: An Application to Japanese Data

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  • Brunello, Giorgio

Abstract

This paper applies a simple model of hours, employment, and earnings to Japanese manufacturing data and shows that a reduction in the number of standard hours is likely to increase overtime and reduce employment. These findings are in line with recent theoretical developments and in contrast to the predictions of traditional analysis of hours and employment adjustment. This difference is shown to be due to the treatment of the wage rate. Copyright 1989 by The London School of Economics and Political Science.

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Bibliographic Info

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

Volume (Year): 56 (1989)
Issue (Month): 224 (November)
Pages: 473-86

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Handle: RePEc:bla:econom:v:56:y:1989:i:224:p:473-86

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Citations

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Cited by:
  1. Dimitri B. Papadimitriou, 1998. "(Full) Employment Policy: Theory and Practice," Economics Working Paper Archive wp_258, Levy Economics Institute.
  2. Ángel Luis Martin Roman & Alfonso Moral de Blas, 2002. "Efectos de las variaciones en el tiempo de trabajo sobre la ocupación adolescente y juvenil en el sector industrial: un análisis regional," Revista de Estudios Regionales, Universidades Públicas de Andalucía, vol. 1, pages 51-77.
  3. Jennifer Hunt, 1996. "Has Work-Sharing Worked in Germany?," NBER Working Papers 5724, National Bureau of Economic Research, Inc.
  4. Thomas Moutos & William Scarth, 2000. "Work-Sharing: an Efficiency-Wage Analysis," CESifo Working Paper Series 386, CESifo Group Munich.
  5. Baek, Ehung Gi & Oh, Wankeun, 2004. "The short-run production effect of the reduction of working hours," Journal of Policy Modeling, Elsevier, vol. 26(1), pages 123-144, January.
  6. Chang, Juin-jen & Huang, Chun-chieh & Lai, Ching-chong, 2007. "Working hours reduction and wage contracting style in a dynamic model with labor adjustment costs," Journal of Economic Dynamics and Control, Elsevier, vol. 31(3), pages 971-993, March.
  7. M. J. Andrews & T. Schank & R. Simmons, 2005. "Does Worksharing Work? Some Empirical Evidence From The Iab-Establishment Panel," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(2), pages 141-176, 05.
  8. Victoria Osuna & Jose-Victor Rios-Rull, 2003. "Implementing the 35 Hour Workweek by Means of Overtime Taxation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(1), pages 179-206, January.
  9. Marimon, Ramon & Zilibotti, Fabrizio, 1999. "Employment and Distributional Effects of Restricting Working Time," CEPR Discussion Papers 2127, C.E.P.R. Discussion Papers.
  10. Simmons, R. & Schank, Thorsten & Andrews, Martyn J., 2004. "Does Worksharing Work? Some Empirical Evidence from the IAB Panel," Discussion Papers 25, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  11. Rocheteau, Guillaume, 2002. "Working time regulation in a search economy with worker moral hazard," Journal of Public Economics, Elsevier, vol. 84(3), pages 387-425, June.
  12. 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.
  13. Dimitri B. Papadimitriou, . "Full Employment Has Not Been Achieved, Full Employment Policy: Theory and Practice," Economics Public Policy Brief Archive ppb_53, Levy Economics Institute.
  14. Mattesini, F. & Quintieri, B., 2006. "Does a reduction in the length of the working week reduce unemployment? Some evidence from the Italian economy during the Great Depression," Explorations in Economic History, Elsevier, vol. 43(3), pages 413-437, July.

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