Working Time, Employment, and Work Sharing: Evidence from Sweden

Stockholm School of Economics Working Paper Series in Economics and Finance No. 135

Posted: 1 Jun 1998

See all articles by Tor Jacobson

Tor Jacobson

Sveriges Riksbank - Research Division

Henry Ohlsson

Uppsala University - Department of Economics

Date Written: November 1996

Abstract

We study three necessary conditions for work sharing to increase employment. First, there must exist a negative long-run relation between working time and employment. Second, hours per worker must be exogenous with respect to wages and employment. Third, policy makers must be able to influence actual hours per worker. We formulate a theoretical model for employment, hours per worker, production, and real wages. A VAR system with cointegrating constraints is estimated by maximum likelihood using Swedish private sector data 1970-1-1990:4. We find: 1) no long-run relation between hours per worker and employment, 2) that hours per worker are endogenous with respect to the estimation of long-run parameters, and 3) that legislated working time and hours per worker are related to each other in the long run.

JEL Classification: E24, J22, J23

Suggested Citation

Jacobson, Tor and Ohlsson, Henry, Working Time, Employment, and Work Sharing: Evidence from Sweden (November 1996). Stockholm School of Economics Working Paper Series in Economics and Finance No. 135, Available at SSRN: https://ssrn.com/abstract=10738

Tor Jacobson (Contact Author)

Sveriges Riksbank - Research Division ( email )

S-103 37 Stockholm
Sweden
+46 8 787 0000 (Phone)

HOME PAGE: www.riksbank.com

Henry Ohlsson

Uppsala University - Department of Economics ( email )

Box 513
Uppsala, SE-75120
Sweden
+46 18 471 51 04 (Phone)

HOME PAGE: http://www.uueconomics.se/henryo/

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