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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

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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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Publisher 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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  1. 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 Social Sciences, Australian National University. [Downloadable!]
    Other versions:
  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. 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. [Downloadable!]
  4. Kapteyn, A. & Kalwij, A. & Zaidi, A., 2000. "The myth of worksharing," Discussion Paper 23, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  5. 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 Social Sciences, Australian National University. [Downloadable!]
  6. 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)
  7. 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!]
  8. Robert Dixon & John Freebairn, 2007. "Hours of Work: A Demand Perspective," Department of Economics - Working Papers Series 1022, The University of Melbourne. [Downloadable!]
  9. 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:
  10. 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 Labour Market Policy Evaluation. [Downloadable!]
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