Can a Shorter Workweek Induce Higher Employment? Mandatory Reductions in the Workweek and Employment Subsidies »
Series: IMF Working Papers
Author(s): S. Erbas , and Chera Sayers
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 October 1999
Keywords: workweek, overtime work, labor demand, labor supply, structural unemployment, employment, wage, worker, unemployment, wages
A reduction in the legal workweek may induce a degree of downward wage flexibility, while an employment subsidy to firms accommodates downward wage rigidity. It may be possible, therefore, to increase employment wi...