Does Worksharing Work? Some Empirical Evidence from the Iab-Establishment Panel

36 Pages Posted: 9 Jun 2005

See all articles by Martyn J. Andrews

Martyn J. Andrews

University of Manchester - School of Social Sciences

Thorsten Schank

University of Erlangen-Nuremberg

Robert Simmons

Lancaster University

Abstract

Recent policy debate in Europe suggests that a shorter workweek will lead to more jobs (worksharing). We derive and estimate a model where the firm employs two types of workers, some working overtime, the rest standard hours. Worksharing is not always a prediction of the theory. Using German establishment-level panel data (the IAB-ESTABLISHMENT panel), 1993-1999, we find no evidence of pro-worksharing effects except in small plants in the East German non-service sector. There is evidence that a cut in standard hours lowers the proportion of overtime workers in a plant, as predicted by the theory, and increases the proportion of standard-time plants.

Suggested Citation

Andrews, Martyn J. and Schank, Thorsten and Simmons, Robert, Does Worksharing Work? Some Empirical Evidence from the Iab-Establishment Panel. Available at SSRN: https://ssrn.com/abstract=729480

Martyn J. Andrews (Contact Author)

University of Manchester - School of Social Sciences ( email )

Oxford Road
Manchester, M13 9PL
United Kingdom
0161 275-4874 (Phone)

Thorsten Schank

University of Erlangen-Nuremberg ( email )

Schloßplatz 4
Erlangen, DE Bavaria 91054
Germany

Robert Simmons

Lancaster University ( email )

Lancaster LA1 4YX, LA1 4YX
United Kingdom

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