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Some Welfare Economics of Working Time

Author

Listed:
  • FitzRoy, Felix

    (University of St. Andrews)

  • Jin, Jim

    (University of St. Andrews)

Abstract

Few skilled workers in the UK have flexible working time – GPs are the exception – most can only choose between unemployment, or full-time work, which has changed little in recent years, while part time work is mainly unskilled. This market rigidity imposes major welfare losses, in contrast to flexibility of worktime for all in the Netherlands, which has the best work-life balance. Stagnating real wages and rising employer market power and inequality follow declining unionisation, but a standard four-day week, tax reform, basic income, and flexibility rights for all could reverse these trends and provide major welfare gains.

Suggested Citation

  • FitzRoy, Felix & Jin, Jim, 2021. "Some Welfare Economics of Working Time," IZA Discussion Papers 14810, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp14810
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    working hours; relative income; labour share; basic income;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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