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Working Hours and Job Sharing in the EU and USAAre Europeans Lazy? Or Americans Crazy?$
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Tito Boeri, Michael Burda, and Francis Kramarz

Print publication date: 2008

Print ISBN-13: 9780199231027

Published to Oxford Scholarship Online: May 2008

DOI: 10.1093/acprof:oso/9780199231027.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 29 March 2020

Reduction of Working Time and Employment

Reduction of Working Time and Employment

(p.113) 4 Reduction of Working Time and Employment
Working Hours and Job Sharing in the EU and USA

Francis Kramarz (Contributor Webpage)

Pierre Cahuc

Bruno Crépon

Oskar Nordstörm Skans

Thorsten Schank

Gijsbert van Lomwel

André Zylberberg

Oxford University Press

This chapter examines the theoretical underpinnings of the effects of work-sharing on employment. The analysis proceeds as follows: Section 4.2 is devoted to an analysis of labour demand when the firm chooses the number of jobs and hours. The interactions between employers' choice and workers' choice over hours, employment, and wages are studied in Section 4.3. Finally Section 4.4 provides some concluding comments. It is shown that compulsory reductions in standard hours can increase employment only in very special circumstances that are very rarely met in the real world. Cross-country differences in working time can be related to differences in institutions and cultures. Although imperfect competition may imply that state regulation of hours is required, this does not mean that systematic reductions in standard hours can improve employment or welfare.

Keywords:   work-sharing, labour demand, working time, wages, compulsory reductions

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