Skip to main content

Longer Working Hours — The Beginning of a New Trend?

  • Chapter
Book cover Designing the European Model

Abstract

A number of company-level agreements on longer working hours have recently been concluded in Germany. Such deals, for example, at Siemens and DaimlerChrysler have been widely publicised. The increases in working time have taken place without — or with only partial — pay compensation and thus represent cuts in hourly wages. They have in many cases occurred in response to employer threats of outsourcing production to lower-cost facilities abroad.

We are grateful for comments on this chapter from Berth Holmlund, Ann-Sofie Kolm, and Oskar Nordstrom Skans.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Aronsson, T. and J. R. Walker (1997) “The Effects of Sweden’s Welfare State on Labour Supply Incentives,” in R. B. Freeman, R. Topel and B. Swedenborg, eds, The Welfare State in Transition. University of Chicago Press, Chicago.

    Google Scholar 

  • Bewley, T. F. (1999) Why Wages Don’t Fall during a Recession, Harvard University Press, Cambridge, MA.

    Google Scholar 

  • Blanchard, O. (2004) “The Economic Future of Europe,” Journal of Economic Perspectives 4, 3–26.

    Article  Google Scholar 

  • Bell, L. and R. Freeman (1994) “Why Do Americans and Germans Work Different Hours?” National Bureau of Economic Research, Working Paper no. 4808.

    Google Scholar 

  • Booth, A. and F. Schiantarelli (1987) “The Employment Effects of a Shorter Working Week,” Economica 54.

    Google Scholar 

  • Calmfors, L. (1985) “Work Sharing, Employment and Wages,” European Economic Review 27.

    Google Scholar 

  • Calmfors, L. (1987) “Wages and Employment in Unionized Economies: Theory and Evidence,” Comment to Bertil Holmlund, in B. Holmlund, K.-G. Löfgren and L. Engström, eds, Trade Unions, Employment and Unemployment Duration, Clarendon Press, Oxford.

    Google Scholar 

  • Calmfors, L. and M. Hoel (1988) “Worksharing and Overtime,” Scandinavian Journal of Economics 90.

    Google Scholar 

  • Calmfors, L. and M. Hoel (1989) “Work Sharing, Employment and Shiftwork,” Oxford Economic Papers 41.

    Google Scholar 

  • Calmfors, L. and R. Nymoen (1990) “Real Wage Adjustment and Employment Policies in the Nordic Countries,” Economic Policy 5.

    Google Scholar 

  • Calmfors, L. and B. Holmlund (2000) “Unemployment and Economic Growth: A Partial Survey,” Swedish Economic Policy Review 7.

    Google Scholar 

  • Crépon, B. and F. Kramarz (2002) “Employed 40 Hours or Not-Employed 39: Lessons from the 1982 Mandatory Reduction of the Workweek,” Journal of Political Economy 110.

    Google Scholar 

  • De Regt, E. (1988) “Labour Demand and Standard Working Time in Dutch Manufacturing, 1945–82,” in R. Hart, ed., Employment, Unemployment and Labour Utilization, Unwin Hyman, Boston.

    Google Scholar 

  • Dur, R. (1997) “ArbeidsduurverkortingenloneninNederland,” Economisch-Statistische Berichten 82.

    Google Scholar 

  • Earle, J. S. and J. Pencavel (1990) “Hours of Work and Trade Unionism,” Journal of Labor Economics 8.

    Google Scholar 

  • EIROnline (2004) Siemens Deal Launches Debate on Longer Working Hours, http://www.eiro.eurofound.eu.int/print/2004/07/feature/de0407106f.html.

  • Franz, W. and W. Smolny (1994) “Sectoral Wages and Price Formation and Working Time in Germany: An Econometric Analysis,” Zeitschrift für Wirtschafts-und Sozialwissenschaften 114.

    Google Scholar 

  • Gordon, R. J. (2002) “Two Centuries of Economic Growth: Europe Chasing the American Frontier,” paper presented at the Economic History Workshop, Northwestern University.

    Google Scholar 

  • Hart, R. A. and T. Sharot (1978) “The Short-Run Demand for Workers and Hours: A Recursive Model,” Review of Economic Studies 45.

    Google Scholar 

  • Holmlund, B. (1987) “Wages and Employment in Unionized Economies: Theory and Evidence,” in B. Holmlund, K.-G. Löfgren and L. Engström, eds, Trade Unions, Employment and Unemployment Duration, Clarendon Press, Oxford.

    Google Scholar 

  • Hunt, J. (1999) “Has Work-Sharing Worked in Germany?” Quarterly Journal of Economics 114.

    Google Scholar 

  • Kalwij, A. S. and M. Gregory (1999) Overtime Hours in Great Britain over the Period 1975–1998: A Panel Data Analysis, Working Paper, University of Oxford.

    Google Scholar 

  • Kapteyn, A., A. S. Kalwij and A. Zaidi (2000) The Myth of Worksharing, IZA, Discussion Paper no 188.

    Google Scholar 

  • Konjunkturinstitutet (2000) Makroekonomiska effekter av en arbetstidsförkortning, Stockholm.

    Google Scholar 

  • Kolling, A. and K. Lehmann (2002) “Arbeitszeitregelungen und Tarifbindung,” BeitrAB 251.

    Google Scholar 

  • Layard, R., S. Nickell and R. Jackman (1991) Unemployment:Macroeconomic Performance, Oxford, University Press Oxford.

    Google Scholar 

  • Lehment, H. (1991) “Lohnzurückhaltung, Arbeitzeitverkürzung und Beschäftigung, Eine empirische Untersuchung für die Bundesrepublik Deutschland 1973–1990,” Die Weltwirtschaft, February.

    Google Scholar 

  • Lehndorff, S. (2004) “On the Rough Road: Collective Bargaining on Working Time in Germany,” paper presented at the WES 2004 Conference, Manchester.

    Google Scholar 

  • Marimon, R. and F. Zilibotti (2000) “Employment and Distributional Effects of Restricting Working Time,” European Economic Review 44.

    Google Scholar 

  • McDonald, I. M. and R. M. Solow (1981) “Wage Bargaining and Employment,” American Economic Review 71.

    Google Scholar 

  • Münchau, W. (2004) “Working Longer to Save Jobs: But Will It Help Europe Close the Productivity Gap?” Financial Times 23 July.

    Google Scholar 

  • Naylor, R. (2003) “Economic Models of Union Behaviour,” in J. T. Addison and C. Schnabel, eds, International Handbook of Trade Unions, Edward Elgar, Cheltenham.

    Google Scholar 

  • Nickell, S. (2003) “Employment and Taxes,” mimeo, Venice International Institute.

    Google Scholar 

  • Nickell, S. and R. Layard (1999) “Labor Market Institutions and Economic Performance,” in O. Ashenfelter and D. Card, eds, Handbook of Labor Economics vol. 3, North Holland, Amsterdam.

    Google Scholar 

  • Nordström Skans, O. (2002) Labour Market Effects of Working Time Reductions and Demographic Changes, Dissertation Series 2002:2, IFAU, Uppsala.

    Google Scholar 

  • Nymoen, R. (1989) “Wages and the Length of the Working Day: An Empirical Test on Norwegian Quarterly Manufacturing Data,” Scandinavian Journal of Economics 91.

    Google Scholar 

  • OECD (1998) Employment Outlook, Paris.

    Google Scholar 

  • OECD (2003) The Sources of Economic Growth in OECD Countries, Paris.

    Google Scholar 

  • OECD (2004) Employment Outlook, Paris.

    Google Scholar 

  • Olovsson, C. (2004) Essays On Dynamic Macroeconomics, Doctoral Thesis, Institute for International Economic Studies, Stockholm University.

    Google Scholar 

  • Oswald, A. (1985) “The Economic Theory of Trade Unions: An Introductory Survey,” Scandinavian Journal of Economics 87.

    Google Scholar 

  • Pencavel, J. and B. Holmlund (1988) “The Determination of Wages, Employment and Work Hours in an Economy with Centralised Wage-Setting: Sweden 1950–1983,” Economic Journal 98.

    Google Scholar 

  • Prescott, E. C. (2004) “Why Do Americans Work So Much More than Europeans?” NBER Working Paper 10316, Cambridge, MA.

    Google Scholar 

  • Sinn, H.-W. (2003a) “Wieder 42 Stunden arbeiten,” Frankfurter Allgemeine Zeitung, 23 July 2003, also “Working Longer,” Ifo Viewpoint no. 47, 25 June 2003, www.cesifo.de.

  • Sinn, H.-W. (2003b) Ist Deutschland noch zu retten? Econ, Munich, editions 1–3.

    Google Scholar 

  • Sinn, H.-W. (2004a) Ist Deutschland noch zu retten? Econ, Munich, editions 7 and 8.

    Google Scholar 

  • Sinn, H.-W. (2004b) “Warum wir länger arbeiten müssen,” Die Welt am Sonntagno. 46, 14 November 2004, also: “Why Extending Working Hours Will Create More Jobs,” Ifo Viewpoint no. 59, 18 November 2003, www.cesifo.de.

  • Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung (2003) Jahresgutachten 2003/04, Wiesbaden.

    Google Scholar 

  • Saint-Paul, G. (1993) “On the Political Economy of Labour Market Flexibility,” NBER Macroeconomics Annual.

    Google Scholar 

  • Saint-Paul, G. (1998) “A Framework for Analyzing the Political Support for Active Labor Market Policy,” Journal of Public Economics 67.

    Google Scholar 

  • Zimmermann, K. F. (2004) “Does More Work Create More Work?” editorial, Economic Bulletin 8, DIW Berlin and Springer-Verlag.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Copyright information

© 2009 Palgrave Macmillan, a division of Macmillan Publishers Limited

About this chapter

Cite this chapter

Honkapohja, S., Westermann, F. (2009). Longer Working Hours — The Beginning of a New Trend?. In: Honkapohja, S., Westermann, F. (eds) Designing the European Model. Palgrave Macmillan, London. https://doi.org/10.1057/9780230236653_6

Download citation

Publish with us

Policies and ethics