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Employment and Length of the Working Week in a Unionized Economy in which Hours of Work Influence Productivity

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  • ALISON BOOTH
  • MARTIN RAVALLION

Abstract

Conditions are derived for signing the employment effects in a unionized economy of a legislated cut in hours when productivity depends on the number of hours worked each week. Aggregate data suggest that employment will generally increase after a small cut in hours for the UK but the employment effect is ambiguous for Australia. Disaggregated data for Australia suggest that the employment effect of a cut in hours is often positive However, any cut in hours imposed on a monopoly union, without a cut in pay, will unambiguously lead to a drop in employment

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  • Alison Booth & Martin Ravallion, 1993. "Employment and Length of the Working Week in a Unionized Economy in which Hours of Work Influence Productivity," The Economic Record, The Economic Society of Australia, vol. 69(4), pages 428-436, December.
    • Handle: RePEc:bla:ecorec:v:69:y:1993:i:4:p:428-436
    DOI: 10.1111/j.1475-4932.1993.tb02124.x
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    References listed on IDEAS

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    9. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
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