Working Time Regulation in a Search Economy with Worker Moral Hazard
This paper analyzes the consequences of a working time reduction within a matching model with worker moral hazard. In the "laissez faire", workers and employers bargain over wages and working hours. When the no-shirking condition (NSC) is binding, the number of working hours is lower than the level that would be negotiated in the case of perfect monitoring and a work-sharing policy increases aggregate employment. At the opposite, for low unemployment countries, the NSC does not bind and a working time regulation always worsens the labour market situation.
|Date of creation:||Jan 2000|
|Date of revision:|
|Publication status:||Published in Journal of Public Economics, vol. 84 (3), June 2002, pp. 387-425|
|Contact details of provider:|| Postal: Université de Lausanne, Faculté des HEC, DEEP, Internef, CH-1015 Lausanne|
Phone: ++41 21 692.33.20
Web page: http://www.hec.unil.ch/deep/publications/cahiers/series
More information through EDIRC
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.:
- Tore Ellingsen & Asa Rosen, 2003.
"Fixed or Flexible? Wage-setting in Search Equilibrium,"
London School of Economics and Political Science, vol. 70(278), pages 233-250, 05.
- Ellingsen, Tore & Rosén, Åsa, 1997. "Fixed or Flexible? Wage Setting in Search Equilibrium," Working Paper Series 1997:17, Uppsala University, Department of Economics.
- Ellingsen, T. & Rosen, A., 1997. "Fixed or Flexible? Wage Setting in Search Equilibrium," Papers 1997-17, Uppsala - Working Paper Series.
- Ellingsen, Tore & Rosén, Åsa, 1997. "Fixed or Flexible? Wage Setting in Search Equilibrium," SSE/EFI Working Paper Series in Economics and Finance 185, Stockholm School of Economics.
- Hoel, Michael & Vale, Bent, 1986. "Effects on unemployment of reduced working time in an economy where firms set wages," European Economic Review, Elsevier, vol. 30(5), pages 1097-1104, October.
- Mortensen, Dale T. & Pissarides, Christopher A., 1999.
"New developments in models of search in the labor market,"
Handbook of Labor Economics,
in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 39, pages 2567-2627
- Mortensen, Dale T & Pissarides, Christopher, 1999. "New Developments in Models of Search in the Labour Market," CEPR Discussion Papers 2053, C.E.P.R. Discussion Papers.
- Jennifer Hunt, 1998. "Hours Reductions as Work-Sharing," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(1), pages 339-381.
- Rocheteau, Guillaume, 1999. "Balanced-Budget Rules and Indeterminacy of the Equilibrium Unemployment Rate," Oxford Economic Papers, Oxford University Press, vol. 51(3), pages 399-409, July.
- Jacobson, Tor & Ohlsson, Henry, 1996.
"Working Time, Employment, and Work Sharing: Evidence from Sweden,"
SSE/EFI Working Paper Series in Economics and Finance
135, Stockholm School of Economics.
- Tor Jacobson & Henry Ohlsson, 2000. "Working time, employment, and work sharing: Evidence from Sweden," Empirical Economics, Springer, vol. 25(1), pages 169-187.
- Marimon, Ramon & Zilibotti, Fabrizio, 1999.
"Employment and Distributional Effects of Restricting Working Time,"
CEPR Discussion Papers
2127, C.E.P.R. Discussion Papers.
- 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, R. & Zilibotti, F., 1999. "Employment and Distributional Effects of Restricting Working Time," Economics Working Papers eco99/19, European University Institute.
- Rebitzer, James B & Taylor, Lowell J, 1995.
"Do Labor Markets Provide Enough Short-Hour Jobs? An Analysis of Work Hours and Work Incentives,"
Western Economic Association International, vol. 33(2), pages 257-73, April.
- James B. Rebitzer & Lowell J. Taylor, 1991. "Do Labor Markets Provide Enough Short Hour Jobs? An Analysis of Work Hours and Work Incentives," NBER Working Papers 3883, National Bureau of Economic Research, Inc.
- Jennifer Hunt, 1999. "Has Work-Sharing Worked in Germany?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 117-148.
- Brunello, Giorgio, 1989. "The Employment Effects of Shorter Working Hours: An Application to Japanese Data," Economica, London School of Economics and Political Science, vol. 56(224), pages 473-86, November.
- Arthur J. Hosios, 1990. "On The Efficiency of Matching and Related Models of Search and Unemployment," Review of Economic Studies, Oxford University Press, vol. 57(2), pages 279-298.
- Calmfors, Lars, 1985. "Work sharing, employment and wages," European Economic Review, Elsevier, vol. 27(3), pages 293-309.
- Booth, Alison & Schiantarelli, Fabio, 1987. "The Employment Effects of a Shorter Working Week," Economica, London School of Economics and Political Science, vol. 54(214), pages 237-48, May.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
- Booth, Alison & Ravallion, Martin, 1993. "Employment and Length of the Working Week in a Unionized Economy in which Hours of Work Influence Productivity," The Economic Record, The Economic Society of Australia, vol. 69(207), pages 428-36, December.
- Boaz Moselle, 1996. "Efficiency Wages and the Hours/Unemployment Trade-Off," Discussion Papers 1153, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Askenazy, Philippe, 2000. "35 heures: contrainte et laissez-faire," CEPREMAP Working Papers (Couverture Orange) 0002, CEPREMAP.
When requesting a correction, please mention this item's handle: RePEc:lau:crdeep:00.06. 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: (Gaëlle Sarda)
If references are entirely missing, you can add them using this form.