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Journal Articles Scandinavian Journal of Economics Year : 2022

Working time reduction and employment in a finite world

Abstract

We study the consequences of a working time reduction (WTR) in a growth model with efficiency and an essential natural resource (natural capital) and in which technical progress cannot reduce the resource content of final production to zero. We show that if natural capital is scarce enough, a WTR increases the long-term levels of the hourly wage and employment. A numerical analysis of the transitory impacts of a WTR confirms that when natural capital is scarcer, a WTR increases employment more and the hourly wage less, with a less negative initial impact on output.

Dates and versions

hal-03969765 , version 1 (02-02-2023)

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Jean‐françois Fagnart, Marc Germain, Bruno van der Linden. Working time reduction and employment in a finite world. Scandinavian Journal of Economics, 2022, ⟨10.1111/sjoe.12513⟩. ⟨hal-03969765⟩
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