The Effect of Lower Hours of Work on Wages and Employment
AbstractThis paper examines the likely effects of a reduction in hours of work employment and wages. We firstly assume that the wage is fixed and present evidence on the direct employment effect of a fall in hours of work. We then analyze the indirect effect on employment from a change in the hourly wage when this is determined endogenously. Our results suggest that reductions in hours of work are not likely to lead to an increase in the hourly wage and will therefore reduce unemployment by sharing any given volume of work among more people. These findings are robust to a number of alternative assumptions about wage and hours determination.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0131.
Date of creation: Mar 1993
Date of revision:
Contact details of provider:
Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jennifer Hunt, 1996.
"Has Work-Sharing Worked in Germany?,"
NBER Working Papers
5724, National Bureau of Economic Research, Inc.
- Chen Yu-Fu & Funke Michael, 2004.
"Working Time and Employment Under Uncertainty,"
Studies in Nonlinear Dynamics & Econometrics,
De Gruyter, vol. 8(3), pages 1-23, September.
- Yu-Fu Chen & Michael Funke, 2004. "Working Time and Employment under Uncertainty," Quantitative Macroeconomics Working Papers 20409, Hamburg University, Department of Economics.
- Yu-Fu Chen & Michael Funke, 2002. "Working Time and Employment under Uncertainty," CESifo Working Paper Series 732, CESifo Group Munich.
- Yu-Fu Chen & Michael Funke, 2002. "Working Time and Employment under Uncertainty," Dundee Discussion Papers in Economics 134, Economic Studies, University of Dundee.
- Kapteyn, A. & Kalwij, A.S. & Zaidi, M.A., 2000.
"The Myth of Worksharing,"
2000-23, Tilburg University, Center for Economic Research.
- Kapteyn, Arie & Kalwij, Adriaan & Zaidi, Asghar, 2000. "The Myth of Worksharing," IZA Discussion Papers 188, Institute for the Study of Labor (IZA).
- Kapteyn, A. & Kalwij, A. & Zaidi, A., 2000. "The Myth of Worksharing," Economics Series Working Papers 9932, University of Oxford, Department of Economics.
- Chang, Juin-jen & Huang, Chun-chieh & Lai, Ching-chong, 2007. "Working hours reduction and wage contracting style in a dynamic model with labor adjustment costs," Journal of Economic Dynamics and Control, Elsevier, vol. 31(3), pages 971-993, March.
- S. Erbaş & Chera Sayers, 2001. "Can a Shorter Workweek Induce Higher Employment? Mandatory Reductions in the Workweek and Employment Subsidies," International Tax and Public Finance, Springer, vol. 8(4), pages 485-509, August.
- Giacomo Corneo, 1994. "La réduction du temps de travail dans les modèles de chômage d'équilibre : une revue de la littérature," Économie et Prévision, Programme National Persée, vol. 115(4), pages 63-73.
- 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.
- Regt,E,de, 1999. "Wage Bargaining, Working Time and Unemployment," Research Memoranda 006, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
- Felix R. FitzRoy & Michael Funke & Michael A. Nolan, 2001. "Taxation, Unemployment and Working Time in Models of Economic Growth," Discussion Paper Series, Department of Economics 200112, Department of Economics, University of St. Andrews.
- Giacomo Corneo, 1995. "Distributional implications of a shorter working week: An unpleasant note," Journal of Economics, Springer, vol. 62(1), pages 25-31, February.
- FitzRoy, Felix R. & Funke, Michael & Nolan, Michael A., 2002. "Working time, taxation and unemployment in general equilibrium," European Journal of Political Economy, Elsevier, vol. 18(2), pages 333-344, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.