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How does a decrease of the number of hours worked per week impact productivity and consequently employment?
Linnaeus University, School of Business and Economics, Department of Economics and Statistics.
Linnaeus University, School of Business and Economics, Department of Economics and Statistics.
2016 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This paper aims to study the effect of the 35 hours week in France on productivity and employment.  France has  implemented  3  successive laws  to  promote  the 35  hours  week through financial incentives in order to improve work sharing.  None of the previous studies agree on the possible impact of such a policy. In this paper, we conduct a Granger Causality test in order to analyse the consequences of the decrease of working hours on productivity and then  employment.  The  results  show  no  causality from  the  number  of  working  hours  to employment. Our main explanation is that the law has never been fully applied and the period was not long enough to observe an important effect of the unemployment rate.  Besides, the level of wage compensation might not have been well calibrated. As a result of our study, we suggest that introducing such a policy, such as reducing working hours to increase employment, in countries where working hours are already short (40 or less) must be well examined before implementation and different characteristics of labour market must be taken into account.

Place, publisher, year, edition, pages
2016. , p. 54
Keyword [en]
working hours, employment, unemployment, productivity, labor market, policy, France, 35 hours, Granger causality
National Category
Economics
Identifiers
URN: urn:nbn:se:lnu:diva-53632OAI: oai:DiVA.org:lnu-53632DiVA, id: diva2:938746
Subject / course
Economics
Presentation
2016-05-31, K1051V, Linnaeus University, Vaxjo, 09:00 (English)
Supervisors
Examiners
Available from: 2016-06-17 Created: 2016-06-16 Last updated: 2016-06-17Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf