"The essence of the plan is a universal limitation of hours of work per week
for any individual by
common consent, and a universal payment of a wage above a minimum . . . I am
asking the
employers of the nation to sign this common covenant . . . in the name of
patriotism and
humanity."   (President Franklin D. Roosevelt, 24 July 1933)

Economica (2011) 78, 133–158

http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0335.2009.00804.x/pdf

Work-sharing During the Great Depression: Did the
‘President’s Reemployment Agreement’ Promote
Reemployment?
By JASON E. TAYLOR
Central Michigan University
Final version received 28 January 2009.


The President’s Reemployment Agreement (PRA) of 1933 directed firms to
reduce workweeks during the
Great Depression so existing jobs could be spread into additional employment
opportunities. Similar ‘worksharing’
policies have recently been implemented across Europe in hopes of reducing
unemployment. I find
that, ceteris paribus, the work-sharing aspects of the PRA created nearly
2.5 million new employment
opportunities in around four months. However, the programme also required
firms to raise hourly wage
rates, offsetting close to half of these gains. Furthermore, most of the
remaining employment gains were
wiped out after cartel-oriented industry-specific codes of fair competition
supplanted the PRA.

-- 
Sandwichman
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