Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93136
Authors: 
Osune, Victoria
Year of Publication: 
2014
Citation: 
[Journal:] Economics: The Open-Access, Open-Assessment E-Journal [Volume:] 8 [Issue:] 2014-7 [Pages:] 1-29
Abstract: 
This paper evaluates the effects for the Spanish case of allowing greater flexibility regarding the weekly hours worked on the working week, employment and productivity. A baseline model economy is calibrated to reproduce the cross-sectional distribution of workweeks across plants, as well as certain features of the Spanish economy. The author compares the steady-state status quo, where a forty-hour workweek is imposed and no flexibility is allowed, and the steady-state of economies with a higher degree of flexibility in weekly hours. The 2012 reform is found to preserve employment and generate a 1.72% increase in productivity. In the work-sharing scenario, the increase in employment (1.86%) comes at the expense of a lower increase in productivity (1.31%). Finally, the full flexibility scenario preserves employment and generates a substantial increase in productivity (2.6%).
Subjects: 
FDI
Workweek
wages
employment
productivity
JEL: 
E24
E60
J21
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/
Document Type: 
Article

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