Following an old economic literature dealing with work sharing, the aim of this paper is to review the theoretical effects on unemployment and inequality we may expect from a working time reduction (WTR). To do so, we begin considering labour demand models and we go through general equilibrium...

We use a simple labour demand framework with heterogeneous workers to evaluate the French 35-hour law impacts on inequality and employment. Our simulations result in a favourable effect of the 35-hour work week on employment levels, but unfavourable effects on working hours: job creations fall...