This paper uses individual data on employment and wages to shed light on the UK's productivity puzzle. It finds that …

on the working week, employment and productivity. A baseline model economy is calibrated to reproduce the cross … higher degree of flexibility in weekly hours. The 2012 reform is found to preserve employment and generate a 1.72% increase … in productivity. In the work-sharing scenario, the increase in employment (1.86%) comes at the expense of a lower …