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Working Time Regulation, Unequal Lifetimes and Fairness

Author

Listed:
  • Marie-Louise Leroux
  • Grégory Ponthiere
Abstract
We examine the redistributive impact of working time regulations in an economy with unequal lifetimes. It is shown that uniform working time reductions, when uncompensated (i.e. constant hourly wage), can reduce inequalities in realized lifetime well-being between short-lived and long-lived persons with respect to the laissez-faire, but at the cost of making the short-lived worse off. When compensated (i.e. constant labour earnings), uniform working time reductions make the short-lived better off, but at the cost of raising inequalities. Then, we characterize the ex post egalitarian optimum, where the realized lifetime well-being of the worst off is maximized, and show that this social optimum involves an increasing age profile in terms of worked hours. We examine the decentralization of that social optimum, and we provide a second-best egalitarian argument for age-dependent working time regulation, which can make the short-lived better off and reduce inequalities in realized lifetime well-being.

Suggested Citation

  • Marie-Louise Leroux & Grégory Ponthiere, 2016. "Working Time Regulation, Unequal Lifetimes and Fairness," CESifo Working Paper Series 6271, CESifo.
    • Handle: RePEc:ces:ceswps:_6271
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp6271.pdf
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    References listed on IDEAS

    as
    1. repec:hal:pseose:halshs-01313802 is not listed on IDEAS
    2. Matthieu Chemin & Etienne Wasmer, 2009. "Using Alsace-Moselle Local Laws to Build a Difference-in-Differences Estimation Strategy of the Employment Effects of the 35-Hour Workweek Regulation in France," Journal of Labor Economics, University of Chicago Press, vol. 27(4), pages 487-524, October.
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    4. Marc Fleurbaey & Marie‐Louise Leroux & Pierre Pestieau & Gregory Ponthiere, 2016. "Fair Retirement Under Risky Lifetime," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(1), pages 177-210, February.
    5. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
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    20. Pierre Cahuc & Stéphane Carcillo, 2014. "The Detaxation of Overtime Hours: Lessons from the French Experiment," Post-Print hal-03460334, HAL.
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    Citations

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    Cited by:

    1. Marie-Louise Leroux & Pierre Pestieau & Gregory Ponthiere, 2021. "Fair long-term care insurance," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 57(3), pages 503-533, October.
    2. Gregory Ponthiere, 2020. "A theory of reverse retirement," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(5), pages 1618-1659, September.
    3. Ponthiere, Gregory, 2023. "Social Insurance against a Short Life: Ante-Mortem versus Post-Mortem Policies," GLO Discussion Paper Series 1342, Global Labor Organization (GLO).

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    More about this item

    Keywords

    working time regulations; longevity; inequalities; labor supply; premature deaths;
    All these keywords.

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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