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- Title
Employment and Allocation Effects of Reducing the Length of the Workday.
- Authors
Hoel, Michael
- Abstract
The paper analyses the effects of reducing the length of the workday in a situation with classical unemployment owing to a fixed hourly real wage rate. The length of the workday is assumed to enter the production functions of the two sectors (manufacturing and services) differently. <BR> Employment will increase in the manufacturing sector, while the employment effect in the service sector is ambiguous. It is possible for employment in the service sector to decline so much that total employment also goes down. <BR> If the workday is shortened in the manufacturing sector alone, employment will rise in this sector and decline in the service sector. The effect on total employment is ambiguous. <BR> With a specific case of mixed classical and Keynesian unemployment, employment in the manufacturing sector will be unaffected by changes in the length of the workday, while a reduction in the length of the workday wilt reduce employment in the service sector if the income elasticity for services is not less than one.
- Subjects
EMPLOYMENT; ELASTICITY (Economics)
- Publication
Economica, 1986, Vol 53, Issue 209, p75
- ISSN
0013-0427
- Publication type
Article
- DOI
10.2307/2554521