TY - JOUR A1 - Lührmann, Melanie A1 - Weiss, Matthias T1 - The Effect of Working Time and Labor Force Participation on Unemployment BT - A New Argument in an Old Debate JF - Economic Modelling N2 - This paper introduces a new argument into the theoretical literature on labor market effects of changes in working hours and labor force participation. We advance a general equilibrium model in which increased labor supply reduces unskilled unemployment via consumer demand: longer work hours and higher labor force participation imply higher incomes and less (leisure) time. In consequence, home production is reduced in favor of outsourcing domestic tasks to the market, shifting consumer demand toward unskill-intensive goods. Relative demand for unskilled labor rises and unemployment falls. Finally, we provide empirical support for the basic mechanisms of our model for Germany. KW - Working time reduction KW - Labor force participation KW - Low skill unemployment KW - Home production KW - Time use Y1 - 2010 U6 - https://doi.org/10.1016/j.econmod.2009.07.024 VL - 27 IS - 1 SP - 67 EP - 82 ER -