Employment and Hours of Work

Employment and Hours of Work

This paper develops a dynamic model of the labor market in which the degree of substitution between employment and hours of work is determined as part of a search equilibrium. Each firm chooses the demand for working hours and the number of vacancies, and the hourly wage rate is determined by Nash bargaining. A firm increases the demand for hours as recruitment becomes more costly. Labor market...

Unions, Temporary Employment and Hours of Work: a Tale of Two Countries *

This paper is the first attempt to analyse the relationship between unionisation, temporary employment and non-standard hours of work, comparing Spain and Britain, which are characterised by relatively different labour market structures and substantially different degrees of employment protections. Despite such differences, these two countries show remarkably similar responses of unionisation t...

Employment, Hours of Work and the Optimal Design of Earned Income Tax Credits

This paper examines the optimal schedule of marginal tax rates and the design of earned income tax credits. The analysis is based on a structural labour supply model which incorporates unobserved heterogeneity, fixed costs of work and the detailed non-convexities of the tax and transfer system. An analytical framework is developed that allows explicitly for an extensive margin in work choices a...

Employment, Hours of Work and the Optimal Taxation of Low Income Families

The design of an optimal tax schedule is examined using a structural labour supply model. The model incorporates unobserved heterogeneity, fixed costs of work, childcare costs and the detailed non-convexities of the tax and transfer system. The analysis concerns optimal design under social welfare functions with different degrees of inequality aversion. It also considers purely Pareto improving...

Substituting Working Hours with Employment :