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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
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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

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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 

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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

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