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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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Cited by:
  1. Thomas Moutos & William Scarth, 2000. "Work-Sharing: an Efficiency-Wage Analysis," CESifo Working Paper Series 386, CESifo Group Munich.
  2. Victoria Osuna Padilla & José-Víctor Ríos-Rull, 2002. "Implementing the 35 Hour Workweek by Means of Overtime Taxation," Economic Working Papers at Centro de Estudios Andaluces E2002/04, Centro de Estudios Andaluces.
  3. Jennifer Hunt, 1996. "Has Work-Sharing Worked in Germany?," NBER Working Papers 5724, National Bureau of Economic Research, Inc.
  4. 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.
  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. 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.
  7. Marimon, R. & Zilibotti, F., 1999. "Employment and Distributional Effects of Restricting Working Time," Economics Working Papers eco99/19, European University Institute.
  8. 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.
  9. 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.
  10. 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.
  11. Dimitri B. Papadimitriou, 1998. "(Full) Employment Policy: Theory and Practice," Economics Working Paper Archive wp_258, Levy Economics Institute.
  12. 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.
  13. 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.
  14. 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.

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