Employment and Length of the Working Week in a Unionized Economy in which Hours of Work Influence Productivity

Alison Booth and Martin Ravallion

The Economic Record, 1993, vol. 69, issue 4, 428-436

Abstract: Conditions are derived for signing the employment effects in a unionized economy of a legislated cut in hours when productivity depends on the number of hours worked each week. Aggregate data suggest that employment will generally increase after a small cut in hours for the UK but the employment effect is ambiguous for Australia. Disaggregated data for Australia suggest that the employment effect of a cut in hours is often positive However, any cut in hours imposed on a monopoly union, without a cut in pay, will unambiguously lead to a drop in employment

Date: 1993
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