Incentive Schemes and Determinants for Recruitment by Firms on the Shorter Working Week

Abstract

Two categories of establishments can be identified among those that made the transition to the 35-hour working week in late 2000: the establishments that signed a Robien or Aubry 1 agreement and received incentive scheme assistance and those that switched to 35 hours without obtaining this assistance, but benefited from the lower payroll charges provided for by the Aubry 2 mechanism. The proposed analysis sets out to identify the determinants for job creations in these two categories of establishments that implemented the shorter working week. It is based on detailed data taken from the 2001 Passages (Transitions) survey conducted by DARES (Directorate for the Coordination of Research, Studies and Statistics) and the BVA institute. The Passages survey reports that the staff of establishments receiving incentive scheme assistance rose by over 10% as opposed to 4% for the others.Work-Sharing, Job Creations, Endogenous Switching Models, Oaxaca Procedure