How does a decrease of the number of hours worked per week impact productivity and consequently employment?
2016 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE credits
Student 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
Keywords [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
2016-06-172016-06-162016-06-17Bibliographically approved