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Some Welfare Economics of Working Time

Author

Listed:
  • FitzRoy, Felix

    (University of St. Andrews)

  • Jin, Jim

    (University of St. Andrews)

Abstract

Few skilled workers in the UK have flexible working time – GPs are the exception – most can only choose between unemployment, or full-time work, which has changed little in recent years, while part time work is mainly unskilled. This market rigidity imposes major welfare losses, in contrast to flexibility of worktime for all in the Netherlands, which has the best work-life balance. Stagnating real wages and rising employer market power and inequality follow declining unionisation, but a standard four-day week, tax reform, basic income, and flexibility rights for all could reverse these trends and provide major welfare gains.

Suggested Citation

  • FitzRoy, Felix & Jin, Jim, 2021. "Some Welfare Economics of Working Time," IZA Discussion Papers 14810, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14810
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    References listed on IDEAS

    as
    1. FitzRoy, Felix R. & Funke, Michael & Nolan, Michael A., 2002. "Working time, taxation and unemployment in general equilibrium," European Journal of Political Economy, Elsevier, vol. 18(2), pages 333-344, June.
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    3. Corneo, Giacomo, 2002. "The efficient side of progressive income taxation," European Economic Review, Elsevier, vol. 46(7), pages 1359-1368, July.
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    5. Costa, Dora L, 2000. "The Wage and the Length of the Work Day: From the 1890s to 1991," Journal of Labor Economics, University of Chicago Press, vol. 18(1), pages 156-181, January.
    6. Easterlin, Richard A., 1974. "Does Economic Growth Improve the Human Lot? Some Empirical Evidence," MPRA Paper 111773, University Library of Munich, Germany.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    working hours; relative income; labour share; basic income;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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