French competitiveness threatened by working hours
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Jul01
2002French competitiveness threatened by working hours
The impact of working hours on the economy can only be assessed over time. Indeed, a sudden reduction in working hours can have immediate positive effects: job creation, better income distribution, reduction in unemployment benefits, revival of consumption, etc. However, in the longer term, the effect may be the opposite if this reduction is not offset by productivity gains. The increase in labour costs may then affect competitiveness, weaken financial results and subsequently lead to job losses due to necessary restructuring.
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