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Comments on:
Labor market effects of worksharing arrangements in Europe
Jan van Ours
Tilburg University
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Long history
May 1, 1886 – ChicagoEight hour song
We want to feel the sunshine (…) 8 hrs for work, 8 hours for rest, 8 hours for
what we willChapman (EJ 1909) – Hours of labor
Why work 10 hours per day if 9 is optimal?
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Annual changes in hours actually worked per employee
1950-1975 1975-2004
France -10.5 -16.0
W-Germany -25.2 -
Netherlands -21.0 -12.2
Sweden -17.0 -0.9
Italy -7.4 -7.4
U.K. -11.0 -9.0
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Decomposition – 2002 Hours/
week
France 36.2
Germany 36.5
Netherlands 31.8
Sweden 38.1
Italy 37.4
U.K. 38.2
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Decomposition – 2002 Hours/
week
Weeks/
year
France 36.2 40.5
Germany 36.5 40.6
Netherlands 31.8 38.4
Sweden 38.1 35.4
Italy 37.4 41.0
U.K. 38.2 40.5
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Decomposition – 2002 Hours/
week
Weeks/
year
Hours/
year
France 36.2 40.5 1467
Germany 36.5 40.6 1480
Netherlands 31.8 38.4 1223
Sweden 38.1 35.4 1349
Italy 37.4 41.0 1533
U.K. 38.2 40.5 1546
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Decomposition – 2002 Hours/
week
Weeks/
year
Hours/
year
Employment rate
France 36.2 40.5 1467 62.2
Germany 36.5 40.6 1480 65.3
Netherlands 31.8 38.4 1223 74.5
Sweden 38.1 35.4 1349 74.9
Italy 37.4 41.0 1533 55.6
U.K. 38.2 40.5 1546 72.7
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Decomposition – 2002 Hours/
week
Weeks/
year
Hours/
year
Employment rate
Hours/
person
France 36.2 40.5 1467 62.2 912
Germany 36.5 40.6 1480 65.3 966
Netherlands 31.8 38.4 1223 74.5 911
Sweden 38.1 35.4 1349 74.9 1010
Italy 37.4 41.0 1533 55.6 852
U.K. 38.2 40.5 1546 72.7 1124
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Work-sharing arrangementsStandard hours per week
France, GermanyWeeks per year:
SwedenPart-time work , employment
NetherlandsExtensive margin:
Italy
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Common elements Downward trend in average working week
More flexibility Germany – increase working time Netherlands – part-time work
Worksharing – no positive employment effects
Employment rates of men slowly falling Employment rates of women strong increase
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Main differences Forced – voluntary
France the rest France: strong government influence – massive
subsidies
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Main differences Forced – voluntary
France the rest France: strong government influence
Opposition against part-time work Netherlands the rest NL: at first opposition of unions
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Main differences Forced – voluntary
France the rest France: strong government influence
Opposition against part-time work Netherlands the rest NL: at first opposition of unions
Availability of childcare facilities Netherlands the rest NL: still few formal childcare facilities
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Dichotomy
France and Germany Position of male full-time workers Events similar
Sweden and the Netherlands Combining work and family life Different routes
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Comments
Nice and interesting paper/chapteroverview of many studies & empirical observations
French biasalmost 60% of the authorstheoretical model France (& Germany)French lazy & crazy: decreasing productivity, rising wages, government intervention
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Main comments - theory Interesting reduction of standard working hours
Upper limit working hours “over the hill” Small decreases: employment Big decreases: employment
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Main comments - theory Interesting reduction of standard working hours
Upper limit working hours “over the hill” Small decreases: employment Big decreases: employment
Explanation Non-competitive world: Monopsony/bargaining State regulation may be required
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Main comments - theory Interesting reduction of standard working hours
Upper limit working hours “over the hill” Small decreases: employment Big decreases: employment
Explanation Non-competitive world: Monopsony/bargaining State regulation may be required
Other forms of working time reduction: part-time work & leave policies Theory less clear
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Main comments - theory Interesting reduction of standard working hours
Upper limit working hours “over the hill” Small decreases: employment Big decreases: employment
Explanation Non-competitive world: Monopsony/bargaining State regulation may be required
Other forms of working time reduction: part-time work & leave policies Theory less clear
Interaction between extension margin of labor supply (participate or not) and the intensive margin of labor supply
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Main comments - II
Growth of part-time work in NL – “Butterfly effect”?
“In no country work-sharing per se has created employment” Not sure: part-time work encouraged
increase of labor supply Competitive world: employment is
determined by labor market participation
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Main comments - III Sweden – no working hours reduction but
leave facilities Almost 1 week in 5 is lost due to “absence for
other reasons than holidays” For competitive reasons? More flexibility?
Conclusion: “work sharing through career interruptions is not an attractive policy option”
Question: “why is it maintained?”
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Conclusions – worksharing
Normative point of view nothing against; preferences
Economic efficiency does not reduce unemployment difficult to persuade non-economists
Actual hours follow standard hours norms follow actual changes
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Are Europeans lazyor Americans crazy?
Suggests that one of the two is true
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Are Europeans lazyor Americans crazy?
Suggests that one of the two is true
Maybe both are true
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Are Europeans lazyor Americans crazy?
Suggests that one of the two is true
Maybe both are true
“Are some Europeans more crazy than others?”