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Unemployment and work sharing in an efficiency wage model

  • François-Charles Wolff

    ()

    (LEN-CEBS, Université de Nantes Cnav and Ined, Paris, France)

  • Mohamed Jellal

    ()

    (Université Mohammed V, Rabat, Morroco ESC Toulouse and Conseils-Eco, France)

  • Khaled Bouabdallah

    ()

    (Université Jean Monnet, Saint-Etienne)

This paper accounts for work sharing and unemployment in an efficiency wage model. The Solow condition holds when working hours are exogenous. Under the assumption of endogeneity and using general forms for the effort and cost functions, we prove that work sharing may have a reducing impact on unemployment.

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File URL: http://www.accessecon.com/pubs/EB/2004/Volume10/EB-04J40001A.pdf
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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 10 (2004)
Issue (Month): 3 ()
Pages: 1-7

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Handle: RePEc:ebl:ecbull:eb-04j40001
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  1. Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345, March.
  2. Jellal, Mohamed & Zenou, Yves, 2000. "A dynamic efficiency wage model with learning by doing," Economics Letters, Elsevier, vol. 66(1), pages 99-105, January.
  3. Faria, Joao Ricardo, 2000. "Supervision and effort in an intertemporal efficiency wage model: the role of the Solow condition," Economics Letters, Elsevier, vol. 67(1), pages 93-98, April.
  4. Lin, Chung-cheng & Lai, Ching-chong, 1994. "The turnover costs and the Solow condition in an efficiency wage model with intertemporal optimization," Economics Letters, Elsevier, vol. 45(4), pages 501-505, August.
  5. Jellal, Mohamed & wolff, François charles, 2003. "Dual labor market and strategic efficiency wage," MPRA Paper 38395, University Library of Munich, Germany.
  6. Jellal, Mohamed & Zenou, Yves, 1999. "Efficiency wages and the quality of job matching," Journal of Economic Behavior & Organization, Elsevier, vol. 39(2), pages 201-217, June.
  7. Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 79-82.
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