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Identifying the Potential of Work-Sharing as a Job-Creation Strategy

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  • Mikal Skuterud

Abstract

Between 1997 and 2000, the Canadian province of Quebec reduced its standard workweek from 44 to 40 hours with the aim of stimulating employment growth. Unlike the European work-sharing policies examined elsewhere, the Quebec policy contained no suggestion or requirement that employers provide wage increases to compensate workers for lost hours. For this reason, among others, the Quebec policy provides a better test of the potential of work-sharing as a job-creation strategy. The evidence suggests that, despite a 20% reduction among full-time workers in weekly hours worked beyond 40, the policy failed to raise employment at either the provincial level or within industries where hours of work were affected relatively more.

Suggested Citation

  • Mikal Skuterud, 2007. "Identifying the Potential of Work-Sharing as a Job-Creation Strategy," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 265-287.
  • Handle: RePEc:ucp:jlabec:v:25:y:2007:p:265-287
    DOI: 10.1086/511379
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Lonnie Golden & Stuart Glosser, 2013. "Work sharing as a potential policy tool for creating more and better employment: A review of the evidence," Chapters,in: Work Sharing during the Great Recession, chapter 7, pages 203-258 Edward Elgar Publishing.
    2. HASEBE Takuya & KONISHI Yoshifumi & SHIN Kong Joo & MANAGI Shunsuke, 2018. "White Collar Exemption: Panacea for long work hours and low earnings?," Discussion papers 18002, Research Institute of Economy, Trade and Industry (RIETI).
    3. Ronald L. Oaxaca, 2014. "The effect of overtime regulations on employment," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-89, October.
    4. Elsayed, Ahmed & de Grip, Andries & Fouarge, Didier & Montizaan, Raymond, 2018. "Gradual retirement, financial incentives, and labour supply of older workers: Evidence from a stated preference analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 150(C), pages 277-294.
    5. Zwickl, Klara & Disslbacher, Franziska & Stagl, Sigrid, 2016. "Work-sharing for a sustainable economy," Ecological Economics, Elsevier, vol. 121(C), pages 246-253.
    6. Zwickl, Klara & Disslbacher, Franziska & Stagl, Sigrid, 2015. "Work-sharing for a sustainable economy," Ecological Economic Papers 4564, WU Vienna University of Economics and Business.
    7. Pedro Raposo & Jan Ours, 2010. "How a Reduction of Standard Working Hours Affects Employment Dynamics," De Economist, Springer, vol. 158(2), pages 193-207, June.
    8. repec:clr:wugarc:y:2016v:42i:04p:665 is not listed on IDEAS
    9. Sánchez, Rafael, 2013. "Do reductions of standard hours affect employment transitions?: Evidence from Chile," Labour Economics, Elsevier, vol. 20(C), pages 24-37.
    10. repec:clr:wugarc:y:2016v:42i:4p:665 is not listed on IDEAS
    11. Arvind Ashta, 2017. "Work-sharing from Different Angles: A literature review," Working Papers CEB 17-033, ULB -- Universite Libre de Bruxelles.
    12. Kuroda, Sachiko & Yamamoto, Isamu, 2012. "Impact of overtime regulations on wages and work hours," Journal of the Japanese and International Economies, Elsevier, vol. 26(2), pages 249-262.
    13. Kawaguchi, Daiji & Naito, Hisahiro & Yokoyama, Izumi, 2017. "Assessing the effects of reducing standard hours: Regression discontinuity evidence from Japan," Journal of the Japanese and International Economies, Elsevier, vol. 43(C), pages 59-76.
    14. Santos Raposo, P.M. & van Ours, J.C., 2008. "How Working Time Reduction Affects Employment and Earnings," Discussion Paper 2008-81, Tilburg University, Center for Economic Research.
    15. Daniel S. Hamermesh & Stephen Donald, 2007. "The Time and Timing Costs of Market Work," NBER Working Papers 13127, National Bureau of Economic Research, Inc.
    16. repec:wfo:wstudy:58684 is not listed on IDEAS
    17. Klara Zwickl & Franziska Disslbacher & Sigrid Stagl, 2015. "Work-sharing for a sustainable economy," Ecological Economics Papers ieep4, Institute of Ecological Economics.
    18. Raposo, Pedro S. & van Ours, Jan C., 2010. "How working time reduction affects jobs and wages," Economics Letters, Elsevier, vol. 106(1), pages 61-63, January.
    19. Martyn Andrews & Hans-Dieter Gerner & Thorsten Schank & Richard Upward, 2015. "More hours, more jobs? The employment effects of longer working hours," Oxford Economic Papers, Oxford University Press, vol. 67(2), pages 245-268.
    20. Klara Zwickl & Franziska Disslbacher & Sigrid Stagl, 2016. "Work-sharing for a sustainable economy," WWWforEurope Working Papers series 111, WWWforEurope.

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