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Work Sharing and Overtime

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  • Calmfors, Lars
  • Hoel, Michael

Abstract

This paper deals with the employment effects of reduced working time when firms' endogenous response of overtime is considered. The anal ysis distinguishes between fixed and profit-maximizing levels of outp ut as well as between interior and corner solutions. It is shown that under plausible assumptions, a reduction in working time is quite li kely to be counterproductive as an employment-promoting measure. Copyright 1988 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Calmfors, Lars & Hoel, Michael, 1988. " Work Sharing and Overtime," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(1), pages 45-62.
  • Handle: RePEc:bla:scandj:v:90:y:1988:i:1:p:45-62
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