Dundee Discussion Papers in Economics 134: Working time and employment under uncertainty

TY - UNPB

T1 - Dundee Discussion Papers in Economics 134

T2 - Working time and employment under uncertainty

AU - Chen, Yu-Fu

AU - Funke, Michael

N1 - This paper was also published by Berkeley Electronic Press in Studies in Nonlinear Dynamics & Econometrics, Vol. 8 (3), Article 5

PY - 2002

Y1 - 2002

N2 - The standard literature on working time has modelled the decisions of firms in a deterministic framework in which firms can choose between employment and overtime (given mandated standard hours). Contrary to this approach, we consider the impact of uncertainty and real options on the decision of working time, i.e. we examine the determinants of employment and hours in a stochastic framework. We conclude the theoretical analysis with a number of simulation exercises to illustrate the working of the model.

AB - The standard literature on working time has modelled the decisions of firms in a deterministic framework in which firms can choose between employment and overtime (given mandated standard hours). Contrary to this approach, we consider the impact of uncertainty and real options on the decision of working time, i.e. we examine the determinants of employment and hours in a stochastic framework. We conclude the theoretical analysis with a number of simulation exercises to illustrate the working of the model.

KW - Real options

KW - Uncertainty

KW - Working time

KW - Employment

KW - Labour demand

M3 - Discussion paper

T3 - Dundee Discussion Papers in Economics

BT - Dundee Discussion Papers in Economics 134

PB - University of Dundee

ER -