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In recent years, it has been debated whether a reduction in working hourswould be a viable solution to tackle the unemployment caused by technologicalchange. The improvement of existing production technology is gradually beingseen to reduce labor demand. Although this debate has been at the forefront formany decades, the high and persistent unemployment encountered in the EuropeanUnion has renewed interest in implementing this policy in order to increaseemployment. According to advocates of reducing working hours, this policy willincrease the number of workers needed during the production process, increasingemployment. However, the contradiction expressed by advocates of working timereduction is that the increase in labor costs will lead to a reduction inbusiness activity and ultimately to a reduction in demand for human resources.In this article, we will attempt to answer the question of whether reducingworking hours is a way of countering the potential decline in employment due totechnological change. In order to answer this question, the aforementionedconflicting views will be examined. As we will see during our statisticalexamination of the existing empirical studies, the reduction of working timedoes not lead to increased employment and cannot be seen as a solution to thelong-lasting unemployment.

Examination of the Correlation between Working Time Reduction and Employment