Schiff, Maurice - Institute for the Study of Labor (IZA) - 2014
's level. On the other hand, if neither EU nor US work time is optimal, then the sign of the EU-to-US welfare difference is … positive (ambiguous) if EU work time is greater (smaller) than the optimum, while simulations show that even in the latter case …, EU welfare is greater than US welfare if, relative to the optimum, the EU work 'shortage' is smaller than the US work …