Work Sharing and Overtime
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.
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Volume (Year): 90 (1988)
Issue (Month): 1 ()
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