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Is Variation in Hours of Work Driven by Supply or Demand? Evidence from Finnish Manufacturing Industries

  • Petri Böckerman

    (Labour Institute for Economic Research)

  • Markus Jäntti

    (Åbo Akademi)

This paper uses panel data from 1989 to 1995 on blue-collar workers in Finnish manufacturing industries and their establishments to assess the extent to which hours of work are affected by individual or establishment characteristics - observed as well as unobserved. We argue that recent research on working hours has focused almost exclusively on the supply of labor, but that insights into the extent to which hours variation is driven not by supply but by demand will affect the likelihood that supply-side policies will succeed. Our estimates suggest that both individual and establishment characteristics matter, but that establishment level effects account for the bulk of the variation in hours.

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File URL: http://econwpa.repec.org/eps/lab/papers/0505/0505012.pdf
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Paper provided by EconWPA in its series Labor and Demography with number 0505012.

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Length: 26 pages
Date of creation: 13 May 2005
Date of revision:
Handle: RePEc:wpa:wuwpla:0505012
Note: Type of Document - pdf; pages: 26
Contact details of provider: Web page: http://econwpa.repec.org

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  1. Marco Bianchi & Bjorn R. Gudmundsson & Gylfi Zoega, 2001. "Iceland's Natural Experiment in Supply-Side Economics," American Economic Review, American Economic Association, vol. 91(5), pages 1564-1579, December.
  2. Petri Böckerman, 2002. "Overtime in Finland," Finnish Economic Papers, Finnish Economic Association, vol. 15(1), pages 36-54, Spring.
  3. Yongsung Chang & Noh-Sun Kwark, 2000. "Decomposition of Hours Based on Extensive and Intensive Margins of Labor," Econometric Society World Congress 2000 Contributed Papers 1416, Econometric Society.
  4. Jaakko Kiander & Jaakko Pehkonen, 1999. "Finnish unemployment: observations and conjectures," Finnish Economic Papers, Finnish Economic Association, vol. 12(2), pages 94-108, Autumn.
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