Working-time reduction and employment: experiences in Europe and economic policy recommendations

The paper seeks to evaluate the evidence on the employment effects of the c ollective working-time reductions in Europe over the past 20 years. While t heoretical analyses produce contradictory assessments, most empirical studi es show positive employment effects but take insufficient account of the co nditions under which the reductions in working time were implemented. These conditions for the success of collective working-time reductions include a n active training policy designed to minimise skill shortages in the labour market, the modernisation of work organisation, wage increases in conjunct ion with productivity gains and a more equal income distribution.