Work hours mismatches among the employed are common. About 7 percent prefer fewer than their current work hours even if it means less income, while another 25 percent want more hours and income, virtually the same as in 1985. Overemployment is higher for women, whites, married, parents of young...

Government schemes that compensate workers for the loss of income while they are on short hours (known as short-time work compensation schemes) make it easier for employers to temporarily reduce hours worked so that labor is better matched to output requirements. Because the employers do not lay...

The standard literature on working time has modelled the decisions of firms in a deterministic framework in which firms can choose between employment and overtime (given mandated standard hours). Contrary to this approach, we consider the impact of uncertainty and real options on the decision of...