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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)

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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://129.3.20.41/eps/lab/papers/0505/0505012.pdf
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Publisher 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://129.3.20.41

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Related research
Keywords: labour supply; labour demand; employment;

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Find related papers by JEL classification:
H2 - Public Economics - - Taxation, Subsidies, and Revenue
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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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. Jaakko Kiander & Jaakko Pehkonen, 1999. "Finnish unemployment: observations and conjectures," Finnish Economic Papers, Finnish Economic Association, vol. 12(2), pages 94-108, Autumn. [Downloadable!]
  2. Marco Bianchi & Bjorn R. Gudmundsson & Gylfi Zoega, 2001. "Iceland's Natural Experiment in Supply-Side Economics," American Economic Review, American Economic Association, vol. 91(5), pages 1564-1579, December. [Downloadable!] (restricted)
  3. Petri Böckerman, 2002. "Overtime in Finland," Finnish Economic Papers, Finnish Economic Association, vol. 15(1), pages 36-54, Spring. [Downloadable!]
  4. Chang, Yongsung & Kwark, Noh-Sun, 2001. "Decomposition of hours based on extensive and intensive margins of labor," Economics Letters, Elsevier, vol. 72(3), pages 361-367, September. [Downloadable!] (restricted)
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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. Olivier Bargain & Kristian Orsini, 2004. "In-work policies in Europe: killing two birds with one stone?," DELTA Working Papers 2004-13, DELTA (Ecole normale supérieure). [Downloadable!]
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