Working Time, Employment, and Work Sharing: Evidence from Sweden

Tor Jacobson () and Henry Ohlsson ()

No 135, Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: We study three necessary conditions for work sharing to increase employment. First, there must exist a negative long-run relation between working time and employment. Second, hours per worker must be exogenous with respect to wages and employment. Third, policy makers must be able to influence actual hours per worker. We formulate a theoretical model for employment, hours peer worker, production, and real wages. A VAR system with cointegrating constraints is estimated by maximum likelihood using Swedish private sector data 1970-1- 1990:4 We find (I) no long-run relation between hours per worker and employment, (II) that hours per worker are endogenous with respect to the estimation of long-run parameters, and (III) that legislated working time and hours per worker are related to each other in the long run.

Keywords: Work sharing; maximum likelihood cointegration; employment; hours per worker; real wages (search for similar items in EconPapers)
JEL-codes: E24 J22 J23 (search for similar items in EconPapers)
Date: 1996-11
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Published in Empirical Economics, 2000, pages 169-187.

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Journal Article: Working time, employment, and work sharing: Evidence from Sweden (2000)
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