' effects in the literature, by employment losses from process and organisational innovation and by general productivity …The shift of employment from lower to higher productive firms is an important driver for structural change and industry … dynamics. We investigate this reallocation in terms of employment gains and losses from innovation. New employment created by …

on the working week, employment and productivity. A baseline model economy is calibrated to reproduce the cross … in productivity. In the work-sharing scenario, the increase in employment (1.86%) comes at the expense of a lower … increase in productivity (1.31%). Finally, the full flexibility scenario preserves employment and generates a substantial …