Did work-sharing work in France? Evidence from a structural co-integrated VAR model
French employment increased significantly after a labor-market reform in 2000. This paper analyzes whether that development was driven by work-sharing (the mandated reduction of the workweek length) as claimed by the government. We use a structural VAR model in error correction form (SVECM) to assess the impact of shocks to the workweek length. It turns out that downward workweek shocks actually had adverse employment effects. We conclude that other reform components were responsible for the employment success in France, namely reduced non-wage labor costs and possibly higher firm-level flexibility of temporarily adjusting the workweek.
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.:
- Robert G. King & Charles I. Plosser & James H. Stock & Mark W. Watson, 1991.
"Stochastic trends and economic fluctuations,"
Working Paper Series, Macroeconomic Issues
91-4, Federal Reserve Bank of Chicago.
- Camille Logeay & Sven Schreiber, 2005.
"Testing the effectiveness of the French work-sharing reform: a forecasting approach,"
IMK Working Paper
03-2005, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
- Camille Logeay & Sven Schreiber, 2006. "Testing the effectiveness of the French work-sharing reform: a forecasting approach," Applied Economics, Taylor & Francis Journals, vol. 38(17), pages 2053-2068.
- Henrik Hansen & Søren Johansen, 1999. "Some tests for parameter constancy in cointegrated VAR-models," Econometrics Journal, Royal Economic Society, vol. 2(2), pages 306-333.
- Ortega, Javier, 2003. "Working-Time Regulation, Firm Heterogeneity, and Efficiency," CEPR Discussion Papers 3736, C.E.P.R. Discussion Papers.
- Jennifer Hunt, 1999. "Has Work-Sharing Worked in Germany?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 117-148.
- Marimon, Ramon & Zilibotti, Fabrizio, 2000.
"Employment and distributional effects of restricting working time,"
European Economic Review,
Elsevier, vol. 44(7), pages 1291-1326, June.
- Marimon, Ramon & Zilibotti, Fabrizio, 1999. "Employment and Distributional Effects of Restricting Working Time," CEPR Discussion Papers 2127, C.E.P.R. Discussion Papers.
- Marimon, R. & Zilibotti, F., 1999. "Employment and Distributional Effects of Restricting Working Time," Economics Working Papers eco99/19, European University Institute.
- Rocheteau, Guillaume, 2002.
"Working time regulation in a search economy with worker moral hazard,"
Journal of Public Economics,
Elsevier, vol. 84(3), pages 387-425, June.
- Guillaume ROCHETEAU, 2000. "Working Time Regulation in a Search Economy with Worker Moral Hazard," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 00.06, Université de Lausanne, Faculté des HEC, DEEP.
- Andrea Bassanini & Romain Duval, 2006.
"Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions,"
OECD Social, Employment and Migration Working Papers
35, OECD Publishing.
- Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Economics Department Working Papers 486, OECD Publishing.
- Calmfors, Lars & Hoel, Michael, 1988. " Work Sharing and Overtime," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(1), pages 45-62.
- David Edgerton & Ghazi Shukur, 1999. "Testing autocorrelation in a system perspective testing autocorrelation," Econometric Reviews, Taylor & Francis Journals, vol. 18(4), pages 343-386.
- Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501, May.
When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:24:y:2008:i:2:p:478-490. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.