Article ID Journal Published Year Pages File Type
5068419 European Journal of Political Economy 2008 13 Pages PDF
Abstract
French employment increased significantly after a labor-market reform in 2000. This paper analyzes whether that development was driven by work-sharing (the mandated reduction of the workweek length) as claimed by the government. We use a structural VAR model in error correction form (SVECM) to assess the impact of shocks to the workweek length. It turns out that downward workweek shocks actually had adverse employment effects. We conclude that other reform components were responsible for the employment success in France, namely reduced non-wage labor costs and possibly higher firm-level flexibility of temporarily adjusting the workweek.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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