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Does Worksharing Work? Some Empirical Evidence from the IAB Panel

Listed author(s):
  • Simmons, R.
  • Schank, Thorsten
  • Andrews, Martyn J.

Recent policy debate in Europe suggests that a shorter workweek will lead to more jobs (worksharing). We derive and estimate a model where the firm employs two types of worker, some working overtime, the rest standard hours. Worksharing is not always a prediction of the theory. Using German establishment-level panel data (the IAB panel), 1993-1999, we find pro-worksharing effects in small plants in the East German non-service sector. There is evidence that a cut in standard hours lowers the proportion of overtime workers in a plant, as predicted by the theory, and increases the proportion of standard-time plants.

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File URL: https://www.econstor.eu/bitstream/10419/23767/1/DP_25.pdf
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Paper provided by Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics in its series Discussion Papers with number 25.

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Date of creation: 2004
Handle: RePEc:zbw:faulre:25
Contact details of provider: Web page: http://www.arbeitsmarkt.wiso.uni-erlangen.de/english-version/

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  1. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier.
  2. 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.
  3. Kapteyn, Arie & Kalwij, Adriaan & Zaidi, Asghar, 2004. "The myth of worksharing," Labour Economics, Elsevier, vol. 11(3), pages 293-313, June.
  4. Hart, Robert A & Ruffell, Robin J, 1993. "The Cost of Overtime Hours in British Production Industries," Economica, London School of Economics and Political Science, vol. 60(238), pages 183-201, May.
  5. Kalwig, A.S. & Gregory, M., 2000. "Overtime Hours in Great Britain Over the Period 1975-1999: A panel Data Analysis," Economics Series Working Papers 9927, University of Oxford, Department of Economics.
  6. Hart, Robert A. & Malley, James R. & Ruffell, Robin J., 1996. "What shapes are overtime premium schedules? Some evidence from Japan, the UK, and the US," Economics Letters, Elsevier, vol. 53(1), pages 97-102, October.
  7. Calmfors, Lars & Hoel, Michael, 1988. " Work Sharing and Overtime," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(1), pages 45-62.
  8. Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Overtime Work and Overtime Compensation in Germany," IZA Discussion Papers 48, Institute for the Study of Labor (IZA).
  9. Jennifer Hunt, 1996. "Has Work-Sharing Worked in Germany?," NBER Working Papers 5724, National Bureau of Economic Research, Inc.
  10. 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.
  11. Andrews, M J & Simmons, R, 2001. "Friday May Never Be the Same Again: Some Results on Work-Sharing from Union-Firm Bargaining Models," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(5), pages 488-516, November.
  12. Bell, David N.F. & Hart, Robert A., 1999. "Overtime Working in an Unregulated Labour Market," IZA Discussion Papers 44, Institute for the Study of Labor (IZA).
  13. Leslie, Derek, 1991. "Modelling Hours of Work in a Labour Services Function," Scottish Journal of Political Economy, Scottish Economic Society, vol. 38(1), pages 19-31, February.
  14. 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 473-486, November.
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