The Effect of a Reduction in Working Hours on Employment: Empirical Evidence for West-Germany
Christian Dreger,
Olaf Fuchs and
Jurgen Kolb
Additional contact information
Olaf Fuchs: Institute for Economic Research Halle
Jurgen Kolb: Federal Ministry of Labour and Social Affairs, Germany
Journal of Economic Insight, 2001, vol. 27, issue 2, 69-81
Abstract:
This paper deals with the effect of a reduction of weekly working time on employment. Often working time reduction is proposed to stimulate employment. We investigate this hypothesis for West German industrial branches using annual data from 1960 to 1995. The analysis is carried out by the means of panel econometric methods. The results suggest that a reduction of a weekly working time has no impact on the level of employment. Moreover, we identify a rise in the firm's demand for overtime hours as one reason for this outcome.
JEL-codes: C23 J23 (search for similar items in EconPapers)
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:mve:journl:v:27:y:2001:i:2:p:69-81
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