Working Time Regulation, Unequal Lifetimes and Fairness

Short summary: 

We examine the redistributive impact of working time regulations in an economy with unequal lifetimes. We show that when hourly wages are kept constant, uniform working time reductions can reduce inequalities in lifetime well-being between short-lived and long-lived persons with respect to the laissez-faire, but they make the short-lived worse off. When total labour earnings are kept constant instead, uniform working time reductions make the short-lived better off, but they raise inequalities. We provide an argument for age-dependent working time regulation, which involves hours worked that increase with age and can make the short-lived better off while reducing inequalities in lifetime well-being.

Publication Authors: 
Marie-Louise Leroux
Grégory Ponthiere
Number: 
16-11
Year: 

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