Hostname: page-component-586b7cd67f-t7czq Total loading time: 0 Render date: 2024-11-24T02:24:31.382Z Has data issue: false hasContentIssue false
  • English
  • Français

The consequences of a shorter working time: Some lessons from a general equilibrium analysis

Published online by Cambridge University Press:  17 August 2016

Pierre Cahuc  and
Pierre Granier
Pierre Cahuc
Affiliation:
MAD, Université de Paris I
Pierre Granier
Affiliation:
GREQAM, Université d'Aix-Marseille II
Get access

Summary

The aim of this paper is to examine, both at partial and general equilibrium, the consequences of work sharing policies, when the wages, the length of the working time and the participation rates are endogenous, in an economy where workers get utility from leisure. It is shown that the effects of a shorter working time are very different at the firm level and at the aggregate level. At a steady state, a decrease in working-time is likely to increase employment at the firm level, but reduces employment and welfare at the aggregate level.

Résumé

Résumé

Le but de cet article est d’étudier les conséquences des politiques de réduction de la durée du travail à l’équilibre partiel et à l’équilibre général dans un modéle où le salaire, la durée du travail et le taux d’activité sont des variables endogènes. Cet article montre que les consequences d’une réduction de la durée du travail sont très différentes à l'équilibre partiel et à l'équilibre général. Dans un etat stationnaire, une diminution de la durée du travail est susceptible d'accroï tre l'emploi a l'equilibre partiel, et de diminuer l'emploi et le bien-ëtre à l'équilibre général.

Keywords

D5J2J5J6D5J2J5J6
Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 63 , Issue 1 , 1997 , pp. 13 - 32
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1997 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

(*)

We wish to thank Xavier Fairisse, Louis-Andre Gerard-Varet, Hubert Kempf, Alan Manning, Andre Zylberberg, an anonymous referee of the Recherches Economiques de Louvain, and participants at seminars in Paris (MAD), Louvain la Neuve (IRES) and Aix en Provence (GREQAM) for comments. All remaining errors are ours.

References

REFERENCES

Andersen, T.M. [1987], Short and long run consequences of shorter working hours, in Pedersen, P.J. and Lund, R. (eds), Unemployment Theory, Policy and Structure, Amsterdam, De Gruyte, pp. 147–165.Google Scholar
Anderson, S. and Deveureux, M. [1988], Trade unions and the choice of capital stock, Scandinavian Journal of Economics, 90(1), pp. 27–44.Google Scholar
Booth, A. and Schiantarelli, F. [1987], The employment effects of a shorter working week, Economica, 54(214), pp. 237–248.Google Scholar
Booth, A. and Schiantarelli, F. [1988], The employment effects of a shorter working week, in Hart, R. (ed), Employment, Unemployment and Labour Utilization, Mass., Unwin and Hyman, pp. 55 76.Google Scholar
Bull, C. [1987], The existence of self-enforcing implícits contracts, Quarterly Journal of Economics, 102(1), pp. 147–159.Google Scholar
Calmfors, L. [1985], Work-sharing, employment and wages, European Economic Review, 27(3–4), pp. 293–309.Google Scholar
Calmfors, L. and Hoel, M. [1988], Work sharing and overtime, Scandinavian Journal of Economics, 90(1), pp. 45–62.Google Scholar
Craine, R. [1973], On the service flow from labour, Review of Economic Studies, 40(121), pp. 39–46.Google Scholar
DrèZE, J.H. [1986], Work sharing: Some theory and recent European experience, Economic Policy, 3,(october), pp. 561–602.Google Scholar
Earle, S.J. and Pencavel, J. [1990], Hours of work and trade unions, Journal of Labor Economics, 8(1), pp. 105–123.Google Scholar
Ehrenberg, R.G. [1971], Heterogenous labor, the internal labor market and the dynamics of the employment-hours decision, Journal of Economic Theory, 3(1), pp. 85–105.Google Scholar
Fallon, P. and Very, D. [1988], The Economics of Labour Markets, Oxford, Philip Allan pubisher.Google Scholar
Felstein, M. [1967], Specification of the labour input in the aggregate production function, Review of Economic Studies, 34(100), pp375–386.Google Scholar
Hart, R.A. [1984], Work-sharing and factor prices European Economic Review, 24(1–2), pp. 165–188.Google Scholar
Hart, R.A. [1987], Working Time and Employment, London, Allen and Urwin.Google Scholar
Hoel, M. [1986], Employment and allocation effects of reducting the lengh of the workday, Economica, 53(209), pp. 75–85.Google Scholar
Hoel, M. and Vallé, B. [1986], Effects on unemployment of reduced working time in an economy where firms set wages, European Economic Review, 30(5), pp. 1097–1104.Google Scholar
Houpis, G. [1993], The effect of lower hours of work on wages and employment, Discussion Paper n° 131, Center for Economic Performances.Google Scholar
Killingsworth, M.R. and Heckman, J. [1986], Female labor supply: A survey, in Aschenfelter, O.C. and Layard, R. (eds), Handbook of Labor Economics, Amsterdam, North-Holland, vol. 1, pp. 205–271.Google Scholar
Layard, R., Nickell, S.J. and Jackman, R. [1991], Unemployment, Oxford, Oxford University Press.Google Scholar
Leslie, D. and Wise, J. [1980], The productivity of hours in UK manufacturing and production industries Economtc Journal, 90(357), pp. 74–84.Google Scholar
Lewis, H.G. [1969], Employer interests in employeee hours of work, Mimeo, University of Chicago.Google Scholar
Manning, A. [1993], Wage bargaining and the Phillips curve: The identification and specification of aggregate wage equations, The Economic Journal, 103(416), pp. 98–118.Google Scholar
Nickell, S.J and Andrews, M. [1983], Unions, real wage and employment in Britain 1951–1979, Oxford Economic Papers, vol 35, supplement, pp. 183–206.Google Scholar
Oswald, A.J. [1985], The economic theory of trade union: An introductory survey, Scandinavian Journal of Economics, 87(2), pp. 160–193.Google Scholar
Pencavel, P. [1986], Labor supply of men: A survey, in Aschenfelter, O.C. and Layard, R., (eds), Handbook of Labor Economics, Amsterdam, North-Holland, vol. 1, pp. 3–204.Google Scholar
Pissarides, C.A. [1990], Equilibrium unemployment theory, Oxford, Basil Black-well.Google Scholar
Trejo, S.J. [1991], The effects of overtime pay regulation on worker compensation, American Economic Review, 81(4), pp. 719–740.Google Scholar