Reducing working time and inequality: what has the French 35-hour work week experience taught us?

Fabrice Gilles () and Yannick L'Horty ()

No 03-07, Documents de recherche from Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne

Abstract: To evaluate the inequality effects of implementing the 35-hour work week, we have used a very general labor demand framework that takes into account various skills and the impact of work duration on wages, hourly productivity and labor organization. Numerical simulations include several components of Aubry devices and consider wide but realistic ranges for the various parameters. The 35-hour work week always increases the employment level but has a negative effect on working hours. Moreover, it reduces employment and wage inequality across the whole labor force and among workers, while probably raising welfare inequality.

Keywords: working time reduction; labor demand; inequality (search for similar items in EconPapers)
JEL-codes: D63 J23 J38 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2003
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