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|Economics Journal Articles
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|Worksharing and Factor Prices
|Hart, Robert A
|Hart RA (1984) Worksharing and Factor Prices. European Economic Review, 24 (2), pp. 165-188. https://doi.org/10.1016/0014-2921%2884%2990105-3
|The aspect of worksharing on which this paper concentrates concerns an increase in the firm's workforce offset by a reduction in average working hours. Emphasis is given to the effect of relative factor prices on worksharing within a model structure which includes the capital stock and worker productivity as endogenous inputs. Factor prices include all the main categories of wage and non-wage labour payments as well as the user cost of capital. Special attention is given to the role of non-wages, both quasi-fixed and variable. An analysis of the effects of marginal employment subsidies on worksharing is also considered with reference to the French 'solidarity contracts'.
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