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Is Variation in Hours of Work Driven by Supply or Demand? Evidence from Finnish Manufacturing Industries

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Author Info

  • Petri Böckerman

    (Labour Institute for Economic Research)

  • Markus Jäntti

    (Åbo Akademi)

Abstract

This paper uses panel data from 1989 to 1995 on blue-collar workers in Finnish manufacturing industries and their establishments to assess the extent to which hours of work are affected by individual or establishment characteristics - observed as well as unobserved. We argue that recent research on working hours has focused almost exclusively on the supply of labor, but that insights into the extent to which hours variation is driven not by supply but by demand will affect the likelihood that supply-side policies will succeed. Our estimates suggest that both individual and establishment characteristics matter, but that establishment level effects account for the bulk of the variation in hours.

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File URL: http://128.118.178.162/eps/lab/papers/0505/0505012.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Labor and Demography with number 0505012.

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Length: 26 pages
Date of creation: 13 May 2005
Date of revision:
Handle: RePEc:wpa:wuwpla:0505012

Note: Type of Document - pdf; pages: 26
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Web page: http://128.118.178.162

Related research

Keywords: labour supply; labour demand; employment;

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References

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  1. Yongsung Chang & Noh-Sun Kwark, 2000. "Decomposition of Hours Based on Extensive and Intensive Margins of Labor," Econometric Society World Congress 2000 Contributed Papers 1416, Econometric Society.
  2. Bianchi, Marco & Gudmundsson, Björn R & Zoega, Gylfi, 2000. "Iceland's Natural Experiment in Supply-Side Economics," CEPR Discussion Papers 2367, C.E.P.R. Discussion Papers.
  3. Petri Böckerman, 2002. "Overtime in Finland," Finnish Economic Papers, Finnish Economic Association, vol. 15(1), pages 36-54, Spring.
  4. Jaakko Kiander & Jaakko Pehkonen, 1999. "Finnish unemployment: observations and conjectures," Finnish Economic Papers, Finnish Economic Association, vol. 12(2), pages 94-108, Autumn.
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Cited by:
  1. Bargain, Olivier & Orsini, Kristian, 2004. "In-work policies in Europe: killing two birds with one stone?," EUROMOD Working Papers EM4/04, EUROMOD at the Institute for Social and Economic Research.

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