Has work-sharing worked in Germany?

Starting in 1985, (West) German unions began to reduce standard hours on an industry-by-industry basis, in an attempt to raise employment. Whether thi s "work-sharing" works is theoretically ambiguous. I exploit the cross-indu stry variation in standard hours reductions to examine their impact on actu al hours worked, wages, and employment. Analysis of industry-level data sug gests that "work-sharing" may have reduced employment in the period 1984-19 94. Using individual data from the German Socio-Economic Panel, I substanti ate the union claim of "full wage compensation:" the hourly wage rose enoug h to offset the decline in actual hours worked.