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Friday May Never Be the Same Again: Some Results on Work-Sharing from Union-Firm Bargaining Models

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  • Andrews, M J
  • Simmons, R

Abstract

This paper analyses work-sharing in the union-firm bargaining context. In keeping with mechanisms observed in actual negotiations, we assume that the firm sets employment and we consider bargaining regimes with and without overtime. In models without overtime, work-sharing is consistent with union-firm bargaining provided that income-sharing occurs when the wage rises. In models with overtime, a Pareto-improving cut in the workweek requires wage concession, which is necessary, but not sufficient, for work-sharing. Our models are consistent with a number of well-established stylised facts. In particular, we explain why estimates of the actual hours-standard hours elasticity are always close to unity. Copyright 2001 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): 48 (2001)
Issue (Month): 5 (November)
Pages: 488-516

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Handle: RePEc:bla:scotjp:v:48:y:2001:i:5:p:488-516

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Cited by:
  1. Goerke, Laszlo & Hillesheim, Inga, 2013. "Relative Consumption, Working Time, and Trade Unions," IZA Discussion Papers 7471, Institute for the Study of Labor (IZA).
  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.
  3. 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.
  4. Antonio Garofalo & Concetto Paolo Vinci, 2000. "Employment, capital operating time and efficiency wages hypothesis: is there any room for worksharing," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 168, pages 397-442.
  5. Andrews, Martyn J. & Gerner, Hans-Dieter & Schank, Thorsten & Upward, Richard, 2012. "More Hours, More Jobs? The Employment Effects of Longer Working Hours," IZA Discussion Papers 6652, Institute for the Study of Labor (IZA).
  6. Antonio Garofalo & R. Plasman & Concetto Paolo Vinci, 2000. "Reducing Working Time In An Efficiency Wage Economy With A Dual Labour Market," Working Papers 7_2000, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.

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