• search hit 77 of 84
Back to Result List

The Effect of Working Time and Labor Force Participation on Unemployment

  • 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.

Export metadata

Additional Services

Share in Twitter Search Google Scholar Statistics
Metadaten
Author:Melanie Lührmann, Matthias WeissORCiD
DOI:https://doi.org/10.1016/j.econmod.2009.07.024
Parent Title (English):Economic Modelling
Subtitle (English):A New Argument in an Old Debate
Document Type:Article
Language:English
Year of first Publication:2010
Release Date:2021/04/07
Tag:Home production; Labor force participation; Low skill unemployment; Time use; Working time reduction
Volume:27
Issue:1
First Page:67
Last Page:82
Institutes:Fakultät Betriebswirtschaft
Publication:Externe Publikationen
research focus:Produktion und Systeme