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It's hard work being a left-wing kook these days. On top of anti-globalization
demonstrations and anti-war protests, there is always some new issue to organize.
This month it is "Take Back Your Time Day," scheduled for Oct. 24. Originated
by the rabidly left-wing Center for Religion, Ethics and Social Policy at Cornell
University, the goal of this effort is to force employers to give workers more paid
time off. In part, the organizers hope to create jobs by dividing up the available
work among more people.
Before my left-wing friends start planning what to do with the extra time they will
gain if work hours are restricted, they should look at what is going on in France.
That country reduced maximum work time to 39 hours per week in 1982 and 35
hours in 1998. Of course, the socialist government mandated that workers receive
the same weekly wages. Government inspectors were sent around to businesses
to make sure that employees left for home after putting in their 35 hours.
The action was taken to increase jobs. France has long had an unemployment rate
far higher than the U.S. It is now 9.6 percent there versus 6.1 percent here. The
socialists figured that there was only so much work to do, so if people were only
allowed to work 35 hours per week, rather that 40 hours, then this meant that 8
workers would be needed to do the work that 7 workers did previously.
Economists call this the "lump of labor" fallacy. It is wrong because work is not
homogeneous, either geographically or in terms of skills. Nor is the demand for
labor fixed. Most importantly, it is a function of the price. If unions raise the
wage rate above the market-clearing level, then unemployment is going to rise.
Similarly, if government mandates a rise in wage rates, as France did by reducing
hours at the same weekly wage, then you are also going to see higher
unemployment.
Consequently, it is not surprising that the French action reduced employment,
rather than raising it, as was its intention. Writing in the Dec. 2002 issue of the
prestigious Journal of Political Economy, economists Bruno Crepon and Francis
Kramarz looked at the first reduction in work hours in 1982. Their unambiguous
conclusion: "Changes in the legal standard workweek led to employment losses,
contrary to the initial goal of these policies."
So if reducing the workweek by 1 hour clearly reduced employment, then
reducing it by another 4 hours reduced it even more. Here the evidence mainly
comes from working people themselves. Shortly after the work restriction took
effect, there were strikes by workers throughout France. One reason is that their
employers told them that no pay raises would be forthcoming due to the cost of
the new program. Others protested that employers worked them harder or
purchased labor-saving machinery to raise productivity and compensate for the
higher cost of labor.
Lately, polls have shown that a large majority of French workers want an end to
or significant reform of the 35-hour week. French government officials are also
complaining that the workweek restrictions raised government spending, partly to
bail-out businesses that would have gone bankrupt without subsidies due to the
higher labor costs, and because government workers were also subject to the new
requirements. They also say that the work restriction has reduced economic
growth in France, thus contributing to a budget deficit higher than allowed under
European Union rules.
Although there is no serious legislative effort in the U.S. to mandate shorter
workweeks, there are several left-wing groups working to bring it about. Their
biggest problem is that most workers are quite satisfied with the number of hours
they work and have no desire to work less. For example, last year people were
asked if they would continue working even if they had enough money to live
comfortably for the rest of their lives. Sixty-eight percent said they would still
work. Another poll asked whether workers would prefer more time off or more
money. Fifty-six percent said they wanted more money rather than more free
time.
Polls also show that many workers would prefer more work hours than they have
now, especially younger workers. Last year, 120,000 workers in South Korea
went on strike against proposed legislation to cut workweeks there. And this was
in a country where that standard workweek includes a half-day on Saturday.
Part of the reason for this is that most people know and accept that long hours and
hard work are necessary for a high standard of living. Studies have shown that
the wealthy work far more than other people. According to U.S. Trust Co., 71
percent of the affluent work more than 40 hours per week, and 31 percent work
more than 50 hours.
Bruce Bartlett is a Senior Fellow with the National Center for Policy Analysis.
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