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Effects of a reduction of working hours on a model with job creation and job destruction

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  • Idoia Zabaleta

    (Economicas - UPNA - Universidad Pública de Navarra [Espagne] = Public University of Navarra)

  • Dominguez Emilio

    (Economics - UPNA - Universidad Pública de Navarra [Espagne] = Public University of Navarra)

  • Miren Ullibarri

    (Economics - UPNA - Universidad Pública de Navarra [Espagne] = Public University of Navarra)

Abstract

This paper shows how, with certain modifications to a standard real business cycle (RBC) model, and with certain qualified responses in the short and long term, a policy of reduction in the number of working hours can have positive effects on activity and employment. The modifications required to bring about these results include the specification of the working day, the existence of the creation and destruction of employment and a differentiation between inactivity and unemployment. Results reveal that any measures taken to reduce the number of working hours must take into consideration the productivity levels of working hours, to thus ensure that the consequences of such a policy are positive not only for employment but also in all other macroeconomic variables.

Suggested Citation

  • Idoia Zabaleta & Dominguez Emilio & Miren Ullibarri, 2011. "Effects of a reduction of working hours on a model with job creation and job destruction," Post-Print hal-00667596, HAL.
    • Handle: RePEc:hal:journl:hal-00667596
    DOI: 10.1080/00036846.2010.526583
    Note: View the original document on HAL open archive server: https://hal.science/hal-00667596
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