Does Worksharing Work? Some Empirical Evidence from the IAB Panel
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.
|Date of creation:||2004|
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|Contact details of provider:|| Web page: http://www.arbeitsmarkt.wiso.uni-erlangen.de/english-version/|
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