Autori
Marimon, Ramon
Zilibotti, Fabrizio

Titolo
Employment and distributional effect of restricting working time
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1999 - Fascicolo: 19 - Pagina iniziale: 1 - Pagina finale: 51

We study thè employment and distributional efFects of regulating (reducirig) working time in a generai equilibrium model vvith search-matching frictioiis.Kb creation entails some fixed costs, but existing jobs are subject to diminishing returns. We characterize thè equilibrium in thè de-regulated economy where large firms and individuai workers freely negotiate wages and hours. Theri. we consider thè efFects of a legislation restricting thè maximum working time, while we let wages re-spond endogenously. In generai, this regulation benefits workers, both unemployed and employed (everi if wages decrease), but reduces prof-its and output. Employment efFects are sensitive to thè representation of preferences. In ourbenchmark, small reductions in working time, starting from thè laissez-faire equilibrium solution, always increase employment, while larger reductions reduce employment. However, thè employment gains from reducing working time are relatively small.



Testo completo: http://www.iue.it/ECO/WP-Texts/ECO99-19.pdf

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