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An Efficiency-Wage-Hours Model and Shorter Working Hours

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  • Schmidt-Sorensen, Jan Beyer
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    Abstract

    An efficiency-wage-hours model is constructed in which the production technology allows for efficiency effects of wages and working hours. Under or overemployment in hours as seen from the point of view of firms is considered. The effects of shorter standard working hours on the wage rate, actual working hours and employment among other things are analysed in an economy with efficiency-wage setting. It is shown that the possibility of overtime work and the elasticity of work effort with respect to working hours is crucial to the results. Finally, it is shown that the traditional trade-off between wages and employment doesn't occur in all situations. Copyright 1991 by Scottish Economic Society.

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    Bibliographic Info

    Article provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.

    Volume (Year): 38 (1991)
    Issue (Month): 2 (May)
    Pages: 113-31

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    Handle: RePEc:bla:scotjp:v:38:y:1991:i:2:p:113-31

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    Cited by:
    1. Jim Malley & Hassan Molana, 2002. "Efficiency Wages, Unemployment and Macroeconomic Policy," Working Papers 2002_3, Business School - Economics, University of Glasgow.
    2. 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.

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