The Shorter Working Week, Productivity and Employment: New Estimates Based on Business Data
AbstractBusiness microdata should be able to measure the employment effect of the shorter working week based on a comparison of firms that have switched to the 35-hour week with those that have remained on 39 hours. Such a comparison should cover firms that are as similar as possible. However, do we have enough information on these firms to make them comparable? Our aim is to examine in which scenario the shorter working week may have created jobs. Productivity losses are found to be smaller than the effects of wage moderation and reductions in charges. The Aubry I firms are therefore thought to have taken advantage of the shorter working week to reduce their unit production costs. This decrease in production costs could therefore have contributed to the buoyancy of their employment. The work sharing mechanisms do not appear to play a prominent role in these developments.
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Bibliographic InfoArticle provided by Institut National de la Statistique et des Etudes Economiques in its journal Economie et Statistique.
Volume (Year): 376-377 (2005)
Issue (Month): (June)
Policy Evaluation; Working Time; Productivity; Employment;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
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