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The Myth of Worksharing

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Author Info
Kapteyn, Arie () (CentER, Tilburg University)
Kalwij, Adriaan S. (Department of Economics, University of Oxford and IZA, Bonn)
Zaidi, Asghar (CentER, Tilburg University)

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Abstract

Worksharing is considered by many as a promising public policy to reduce unemployment. In this paper we present a review of the most pertinent theoretical and empirical contributions to the literature on worksharing. In addition, we also provide new empirical evidence on this issue, by a cross country analysis exploiting aggregate data for 13 OECD countries. The conclusions of the literature survey are indecisive. Conclusions about the efficacy of worksharing as an employment enhancing policy tool depend heavily on the setting in which the analysis takes place. Our empirical analysis does not find any evidence for the proposition that worksharing would promote employment or reduce unemployment. In an appendix we present an overview of recent public policy experience of European Countries with respect to different forms of worksharing. Also here the evidence is mixed.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 188.

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Length: 54 pages
Date of creation: Aug 2000
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Handle: RePEc:iza:izadps:dp188

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Related research
Keywords: Employment; hours of work; panel data;

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Find related papers by JEL classification:
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
J2 - Labor and Demographic Economics - - Demand and Supply of Labor
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. R Richardson & Marcus Rubin, 1993. "The Shorter Working Week in Engineering: Surrender without Sacrifice," CEP Discussion Papers dp0113, Centre for Economic Performance, LSE.
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    Other versions:
  3. Toedter, Karl-Heinz, 1988. "Effects of shorter hours on employment in disequilibrium models," European Economic Review, Elsevier, vol. 32(6), pages 1319-1333, July. [Downloadable!] (restricted)
  4. Arie Kapteyn & Klaas de Vos, 1997. "Social Security and Retirement in The Netherlands," NBER Working Papers 6135, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    Other versions:
  6. Hart, R A & Sharot, T, 1978. "The Short-run Demand for Workers and Hours: A Recursive Model," Review of Economic Studies, Blackwell Publishing, vol. 45(2), pages 299-309, June. [Downloadable!] (restricted)
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  8. Calmfors, Lars & Hoel, Michael, 1988. " Work Sharing and Overtime," Scandinavian Journal of Economics, Blackwell Publishing, vol. 90(1), pages 45-62.
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    Other versions:
  14. Jennifer Hunt, 1999. "Has Work-Sharing Worked In Germany?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 117-148, February. [Downloadable!] (restricted)
    Other versions:
  15. Bekker, Paul A, 1994. "Alternative Approximations to the Distributions of Instrumental Variable Estimators," Econometrica, Econometric Society, vol. 62(3), pages 657-81, May. [Downloadable!] (restricted)
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  18. Pasaran, M.H. & Im, K.S. & Shin, Y., 1995. "Testing for Unit Roots in Heterogeneous Panels," Cambridge Working Papers in Economics 9526, Faculty of Economics, University of Cambridge.
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  19. M Pesaran & Yongcheol Shin & Ron P Smith, 2004. "Pooled mean group estimation of dynamic heterogeneous panels," ESE Discussion Papers 16, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Regt,E.R.,de, 2004. "Hourly wages and working time in the Dutch market sector 1962-1995," Research Memoranda 028, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
  2. Steiner, Viktor & Peters, Ralf-Henning, 2000. "Employment effects of work sharing : an econometric analysis for West Germany," ZEW Discussion Papers 00-20, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  3. Spitznagel, Eugen & Wanger, Susanne, 2004. "Mehr Beschäftigung durch längere Arbeitszeiten? : ein Beitrag zu der Diskussion um eine generelle Erhöhung der Arbeitszeit," IAB-Forschungsbericht 200405, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
  4. Robert Dixon & John Freebairn, 2007. "Hours of Work: A Demand Perspective," Department of Economics - Working Papers Series 1022, The University of Melbourne. [Downloadable!]
  5. Wolf, Elke, 2000. "Loosening hours constraints on the supply of labor : what if Germans had a Dutch labor market?," ZEW Discussion Papers 00-54, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  6. Santos Raposo, P.M. & Ours, J.C. van, 2008. "How Working Time Reduction Affects Employment and Earnings," Discussion Paper 2008-81, Tilburg University, Center for Economic Research. [Downloadable!]
  7. Raposo, Pedro & van Ours, Jan C., 2008. "How Working Time Reduction Affects Employment and Earnings," IZA Discussion Papers 3723, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Matthieu Bunel, 2005. "Les performances des entreprises selon leur situation à l'égard des 35 heures," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 11-23. [Downloadable!]
  9. Andersson, Fredrik & A. Konrad, Kai, 2001. "Globalization and Human Capital Formation," IZA Discussion Papers 245, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  10. Mary Gregory & Adriaan S. Kalwij, 2000. "Overtime Hours in Great Britain Over the Period 1975-1999: A Panel Data Analysis," Economics Series Working Papers 027, University of Oxford, Department of Economics. [Downloadable!]
    Other versions:
  11. Gustavo Gonzaga & Naércio Aquino Menezes Filho & José Márcio Camargo Author Email: jcamargo@econ.puc-rio.br, 2002. "Os efeitos da redução da jornada de trabalho de 48 para 44 horas semanais em 1988," Textos para discussão 458, Department of Economics PUC-Rio (Brazil). [Downloadable!]
  12. 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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