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Employment and Length of the Working Week in a Unionized Economy in which Hours of Work Influence Productivity

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Author Info

  • Booth, Alison
  • Ravallion, Martin

Abstract

Conditions are derived for signing the employment effects in a unionized economy of a legislated cut in hours when productivity depends on the number of hours worked each week. Aggregate data suggest that employment will generally increase after a small cut in hours for the United Kingdom but the employment effect is ambiguous for Australia. Disaggregate data for Australia suggest that the employment effect of a cut in hours is often positive. However, any cut in hours imposed on a monopoly union, without a cut in pay, will unambiguously lead to a drop in employment. Copyright 1993 by The Economic Society of Australia.

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Bibliographic Info

Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 69 (1993)
Issue (Month): 207 (December)
Pages: 428-36

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Handle: RePEc:bla:ecorec:v:69:y:1993:i:207:p:428-36

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Cited by:
  1. Nordström Skans, Oskar, 2001. "The effects of working time reductions on wages, actual hours and equilibrium unemployment," Working Paper Series 2001:8, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  2. Jennifer Hunt, 1996. "Has Work-Sharing Worked in Germany?," NBER Working Papers 5724, National Bureau of Economic Research, Inc.
  3. Wehke, Sven, 2009. "Union wages, hours of work and the effectiveness of partial coordination agreements," Labour Economics, Elsevier, vol. 16(1), pages 89-96, January.
  4. Alison Booth & Margi Wood, 2004. "Back-to-front Down-under? Part-time/Full-time Wage Differentials in Australia," CEPR Discussion Papers 482, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  5. Goerke, Laszlo & Hillesheim, Inga, 2013. "Relative Consumption, Working Time, and Trade Unions," IZA Discussion Papers 7471, Institute for the Study of Labor (IZA).
  6. Kapteyn, A. & Kalwij, A.S. & Zaidi, M.A., 2000. "The Myth of Worksharing," Discussion Paper 2000-23, Tilburg University, Center for Economic Research.
  7. Guillaume ROCHETEAU, 2000. "Working Time Regulation in a Search Economy with Worker Moral Hazard," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 00.06, Université de Lausanne, Faculté des HEC, DEEP.
  8. Arie Kapteyn, 2000. "The Myth of Worksharing," Economics Series Working Papers 32, University of Oxford, Department of Economics.
  9. Chun-chieh Huang & Ching-chong Lai & Juin-jen Chang, 2004. "Working Hours Reduction and Endogenous Growth," IEAS Working Paper : academic research 04-A006, Institute of Economics, Academia Sinica, Taipei, Taiwan.
  10. Alison Booth & Margi Wood, 2006. "Back-to-front Down-under? Estimating the Part-time/Full-time Wage Differential over the Period 2001-2003," CEPR Discussion Papers 525, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  11. Regt,E,de, 1999. "Wage Bargaining, Working Time and Unemployment," Research Memorandum 006, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  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. Robert Dixon & John Freebairn, 2007. "Hours of Work: A Demand Perspective," Department of Economics - Working Papers Series 1022, The University of Melbourne.
  14. Antonio García Sánchez & María del Mar Vázquez Méndez, 2005. "The timing of work in a general equilibrium model with shiftwork," Investigaciones Economicas, Fundación SEPI, vol. 29(1), pages 149-179, January.

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