Mandatory working time reductions have recently been applied, especially in France in the public sector (electricity) or road transport. This text aims at analyzing the consequences of working time constraints imposed on the sector supplying the consumption goods industry with a basic productive commodity or service. A simple model of working time setting by firms is nested in a conventional microeconomic representation of the productive sector. Perverse effects on job creation are revealed in a comparative static analysis.
CONTENSOU, F. and VRANCEANU, R. (1997). Effects of Working Time Constraints on Employment: A Two-sector Model. ESSEC Business School.