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Comments on: Labor market effects of worksharing arrangements in Europe

Comments on: Labor market effects of worksharing arrangements in Europe. Jan van Ours Tilburg University. Long history. May 1, 1886 – Chicago Eight hour song We want to feel the sunshine (…) 8 hrs for work, 8 hours for rest, 8 hours for what we will Chapman (EJ 1909) – Hours of labor

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Comments on: Labor market effects of worksharing arrangements in Europe

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  1. Comments on:Labor market effects of worksharing arrangements in Europe Jan van Ours Tilburg University

  2. Long history • May 1, 1886 – Chicago • Eight hour song • We want to feel the sunshine (…) • 8 hrs for work, 8 hours for rest, 8 hours for what we will • Chapman (EJ 1909) – Hours of labor • Why work 10 hours per day if 9 is optimal?

  3. Annual changes in hours actually worked per employee

  4. Decomposition – 2002

  5. Decomposition – 2002

  6. Decomposition – 2002

  7. Decomposition – 2002

  8. Decomposition – 2002

  9. Work-sharing arrangements • Standard hours per week  • France, Germany • Weeks per year: • Sweden • Part-time work , employment  • Netherlands • Extensive margin: • Italy

  10. Common elements • Downward trend in average working week • More flexibility • Germany – increase working time • Netherlands – part-time work • Worksharing – no positive employment effects • Employment rates of men slowly falling • Employment rates of women strong increase

  11. Main differences • Forced – voluntary • France  the rest • France: strong government influence – massive subsidies

  12. Main differences • Forced – voluntary • France  the rest • France: strong government influence • Opposition against part-time work • Netherlands  the rest • NL: at first opposition of unions

  13. Main differences • Forced – voluntary • France  the rest • France: strong government influence • Opposition against part-time work • Netherlands  the rest • NL: at first opposition of unions • Availability of childcare facilities • Netherlands  the rest • NL: still few formal childcare facilities

  14. Dichotomy • France and Germany • Position of male full-time workers • Events similar • Sweden and the Netherlands • Combining work and family life • Different routes

  15. Comments Nice and interesting paper/chapter overview of many studies & empirical observations French bias almost 60% of the authors theoretical model France (& Germany) French lazy & crazy: decreasing productivity, rising wages, government intervention

  16. Main comments - theory • Interesting reduction of standard working hours • Upper limit working hours “over the hill” • Small decreases: employment • Big decreases: employment

  17. Main comments - theory • Interesting reduction of standard working hours • Upper limit working hours “over the hill” • Small decreases: employment • Big decreases: employment • Explanation • Non-competitive world: Monopsony/bargaining • State regulation may be required

  18. Main comments - theory • Interesting reduction of standard working hours • Upper limit working hours “over the hill” • Small decreases: employment • Big decreases: employment • Explanation • Non-competitive world: Monopsony/bargaining • State regulation may be required • Other forms of working time reduction: part-time work & leave policies • Theory less clear

  19. Main comments - theory • Interesting reduction of standard working hours • Upper limit working hours “over the hill” • Small decreases: employment • Big decreases: employment • Explanation • Non-competitive world: Monopsony/bargaining • State regulation may be required • Other forms of working time reduction: part-time work & leave policies • Theory less clear • Interaction between extension margin of labor supply (participate or not) and the intensive margin of labor supply

  20. Main comments - II • Growth of part-time work in NL – “Butterfly effect”? • “In no country work-sharing per se has created employment” • Not sure: part-time work encouraged increase of labor supply • Competitive world: employment is determined by labor market participation

  21. Main comments - III • Sweden – no working hours reduction but leave facilities • Almost 1 week in 5 is lost due to “absence for other reasons than holidays” • For competitive reasons? • More flexibility? • Conclusion: “work sharing through career interruptions is not an attractive policy option” • Question: “why is it maintained?”

  22. Conclusions – worksharing • Normative point of view • nothing against; preferences • Economic efficiency • does not reduce unemployment • difficult to persuade non-economists • Actual hours follow standard hours • norms follow actual changes

  23. Are Europeans lazyor Americans crazy? • Suggests that one of the two is true

  24. Are Europeans lazyor Americans crazy? • Suggests that one of the two is true • Maybe both are true

  25. Are Europeans lazyor Americans crazy? • Suggests that one of the two is true • Maybe both are true • “Are some Europeans more crazy than others?”

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