Working time reduction and employment in a finite world

Jean‐François Fagnart, Marc Germain and Bruno Van der Linden

Scandinavian Journal of Economics, 2023, vol. 125, issue 1, 170-207

Abstract: We study the consequences of a working time reduction (WTR) in a growth model with efficiency wages and an essential natural resource (natural capital), and in which technical progress cannot reduce the resource content of final production to zero. We show that if natural capital is scarce enough, a WTR increases the long‐term levels of the hourly wage and employment. A numerical analysis of the transitory impacts of a WTR confirms that when natural capital is scarcer, a WTR increases employment more and the hourly wage less, with a less negative initial impact on output.

Date: 2023
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https://doi.org/10.1111/sjoe.12513

Related works:
Working Paper: Working time reduction and employment in a finite world (2022)
Working Paper: Working Time Reduction and Employment in a Finite World (2021)
Working Paper: Working Time Reduction and Employment in a Finite World (2020)
Working Paper: Working Time Reduction and Employment in a Finite World (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:125:y:2023:i:1:p:170-207

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