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Work Sharing: Issues, Policy Options, and Prospects

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Work Sharing: Issues, Policy Options, and Prospects DOCUMENT RESUME ED 201 819 ZIT 028 AUTHOR Best, 7r-red TI-TLE Work E_-ari.ng:ISSUE Folic- and Trsrri7TOT7ON Upjohn (W.E.) Inst. or 7.mn _cm Reearch Kalama=on, Mich. FPOFT ISBN-C--1 1558-79-9: 7-7-13 r_.) A 81 772r 217p. A"-AILABLE FROM W. E. ute for :Plc 300 S. westnr-e Ave., Kal_am=o, "7 .nad cov $8.00: paper, $5.0.. oi available). 7Dpq MF01 Plus Postage. DESCPIP7ORS Adults; Economic N-1-mx__,m7gri_csnn CPorr ies: *Employment_ Practi es: -ime -Employment; *Public Policy .1-73c-fai *Ur.employment 77EN77-1.-7-7 S Impact; *Job Sharing This monograph reviews zurren- 77--:':_'eVa---7:erofwork sharing and assesses cr7.-.-a4-_i-or. potential, and likely socia_l__ pac ate:1 t7 the concept. Chapter r. overvi 'A977_"_147. sg n -oast .7-4:haring as an alternative to the (mt. anemplo-rmer-t in fulre_ Chapter 2 reviews issues of 7-0771r. ',I a :1.7'1g :The se c--.-7--_;_dera-tio7s are consolidated into thsthe o mpac.t.- :7-=3uc-oivityand price stability, job participation and aggregate er.p-Lovz---....- sociefL eguitY -tar-7eta.bility,flexibility of impl_e_men. 7,--_rative costs and reaulatory secoaLt.= cr.ncerrs. Chapter 3 focuses on sevetezy-:-:- de,---7!:Tcrne:a to redistribute existin: and oros--pe_-_=.:LvE: oppo-rtin-itles through work sharing. They major catego=i.-es: (1) subsidized worktime reduct.t.--.7 (2) .lim.Ltation of worktime (5 options), trade-cs (4 options) , and(4) voluntary -:=Ezda-off options for individuals (2 options). Chapter wor::: sharing c,ptions and then compares the most promising approaches to combattrarr. unemployment. (YLB) ***#*********=** Reductions supplied by EDRS are the bast =mat an be made from the original docurasnt_ *****************************************t* *---- *************** Issues, Policy Options and Prospects FRED BEST U S DEPARTMENT OF HEALTH. "PERMISSION TO REPRODUCE THIS EDUCATION & WELFARE MATERIAL INMICROFICHE ONLY NAI-IONAL INSTITUTE OF HAS BEEN GRANTED BY EDUCATION THIS DOCUMENT HAS BEEN REPRO- DUCED EXACTLY .'S RECEIVED FROM THE PERSON OR ORGANIZATION ORIGIN. AtiNG IT POINTS OF VIEW OR °PINTOS'S 67-3erineetf- STATED DO NOT NECESSARILY REP== - SENT (IFFIcIAL NATIONAL INSTITUTE 7. TO THE EDUCATIONAL RIESOURCES EDUCATION POSITION OR POLICY INFORMATION CENTER (ERIC)." THE W. E. UPJOHN INSTITUTE FOR EMPLOYMENT RESEARCH Library of Congress Cataloging in Publication Data Best, Fred Work Sharing. Bibliography: p. 1. Work Sharing.I.W.E. Upjohn Institute for Employment Research.II.Title HD5110.5.B47 331.25'72 81-7567 AACR2 ISBN 0-911558-79-9 (hardcover) ISBN 0- 911558 -80 -2 (paperback) Copyright © 1981 by the W. E. UPJOHN INSTITUTE FOR EMPLOYMENT RESEARCH 300 South Westnedge Ave. Kalamazoo, Michigan 49007 THE INSTITUTE, a nonprofit research organization, was established on July 1, 1945. It is an activity of the W. E. Upjohn Unemployment Trustee Corporation, which was formed in 1932 to administera fund set aside by the late Dr. W. E. Upjohn for the purpose of carrying on "research into the causes and effects of unemployment andmeasures for the alleviation of unemployment." 3 The Board of Tn..: tees of the W. E UpjohR Unemployment Trustee Preston S. Parish, Chz-.-_ann= Mrs. Ray T. Parfet,. Vice :hainnan Charles C. Gibbons, Vice 1 airman D. Gordon Knapp, S.-.:retai- -easure: E. Gifford Upjohn, , Mrs. Genevieve U. Gil 7---i-xe James H. Duncan John T. Bernhard The Staff of the Institute E. Earl Wright, Director Saul J. Blaustein Judith K. Brawer Phyllis Buskirk H. Allan Hunt John R. Mekemsim- Carla J. Noe Jo Bentley Rem: Robert A. Strait. Wayne R. Wendiz--- Jack R. Wood iii 4 The Author Fred Best isc _:Tently directing a special:Illation of work sharing f_ he California Employment_..-evelopment Department ir. Scramento. He usly f_ positions with the U.S. .artment of Labor, t_:-=_ Nation-a: Con7is- sion for Employ=...--nt Policy, the U.S. of Com- merce, and the Department of Edaration and Welfare. Dr. Best has -oublishedwidely cor nir:.:the changing nature of work. His booksand m= is include The Future of Work, ExchangingEarnin.77 eisure, Shared Work Compensa.rion, andFlexible L:Sc His ar- ticles have appeared injournals suz.. .3nthly Labor Review, Social Fcrces, andAging anc or, . other areas of research include policy develop-..7:.--nta7-,..1evaluation, social indicators. education,famil, aging and retirement. Dr. Best hole.:a B.A. in econcrTh.os amth historyand M.B.A. from the Universityof Califc'iaat F.rkeley, and a Ph.D. in sociology fromthe Univers::: ofMassachusetts at Amherst. iv Dedicated with love and admiration to my wife, Francine Corton V 6 Foreword Relatively high levels of unemployment, togeaF, with other social and economic developments, have resuLtai in in- creased interest in work sharing. Although the concept is far from new, it has emerged as an increasingly viable alter- native solution to the problems of unemployment, both at the firm level and from a public policy perspective. A broad array of specific approaches has been proposed under the concept of work sharing. The strategies range from specific proposals that are designed as short term ef- forts to avert layoffs and dismissals to long term methods for alleviatingunemployment bycreatingjobsforthe unemployed through reduced worktime. In this monograph, Dr. Best provides an exellent review of the history and current relevance of work sharing and assesses the issues, policy options, job creation potential, and likely social and economic impacts related to the con- cept. In the author's opinion, the primary issues for the future relate to the scope of work sharing and the alternative forms that it may take. Facts and observations presented in this monograph are the sole responsibility of the author. His viewpoints do not necessarily represent the positions of the W.E. Upjohn In- stitute for Employment Research. E. Earl Wright Director Kalamazoo, Michigan April 1981 vi 7 Preface and Acknowledgments This monograph has been prepared with the hope of widening the scope of discussion given to work sharing. Over the last several years, debate about work sharing has emerg- ed on many occasions. Unfortunately, attention given to this topic has generally taken the form of advocacy for and op- position to very specific approaches. As a result, many peo- ple have come to view work sharing as taking only one par- ticular form rather than as a generic concept. First and foremost, this volume is intended to encourage readers to think of work sharing as the general idea of reducing worktime in order to spread employment, and second, to recognize that there are many approaches to this general ob- jective.I hope that the pages that follow will serve to broaden the debate on work sharing so that awareness of available options progresses hand-in-hand with the social and political pressures which may catalyze interest in sharing work during coming years. Yet another hope for this volume is that it will help in the isolation and understanding of the social and economic forces that will determine the viability of the most promising forms of work sharing. Proponents have all too frequently paid inadequate attention to the very real economic costs and institutional constraints that can neutralize the proposed benefits and applicability of work sharing. Correspondingly, even highly trained and sophisticated opponents have fre- quently dismissed all work sharing as a "defeatist strategy" without adequate attention to specific proposals or the cur- rents of social change which may make such programs both advisable and viable. Work sharing, like all prospective areas vii of public policy, will succeedor fail within a complex web of technical, economic and social conditions.Some effort has been made in this volume to isolate andexamine these condi- tions. The topic of work sharing is, for themost part, a largely unexplored issue. While there isa growing literature, em- pirical grounding issparse and most analysis is largely theoretical and speculative. This is alsotrue for this volume. Thus, I urge readers to beaware that some of the judgments made in this monograph may be subjectto reappraisal as em- pirical research progresses. I am most grateful to the W.E. UpjohnInstitute and its Director, E. Earl Wright, for providingthe opportunity to publish this study. The contentsrepresent thoughts and writings that have been in variousstages of partial comple- tion for some time, and the support ofthe Institute pro.vided a most welcome impetus to define and consolidatethis material. A particular note of appreciation isdue the Organization for Economic Co-operation and Developmentin Paris. Dur- ing May 1979, their support enabledme to complete the in- itial stages of this volume in theform of a paper titied, "Work Sharing: Policy Options andAssessments." They have graciously agreed to letme use portions of the paper for this monograph. Numerous other persons and institutionshave contributed to the research activities which ledto this volume. Foremost, Isabel V. Sawhill, the past Director ofthe National Commis- sion for Employment Policy, playeda critical role by pro- viding the guidance andresources necessary for me to ex- plore the topic of work sharing while servingas an Associate at the Commission. It must be said that shehas always ex- pressed grave reservations about the viabilityof work shar- ing, but that she has been thoroughlycommitted to the goal viii of insuring an honest and open debate on the topic. Addi- tionally, Barry Stern of the U.S. Department of Education has conducted and guided much of the initial research on the issue. Others who have generously helped with technical ad- vice, data and encouragement include Lennart Arvedson, Patsey Fryman, Janice Hedges, William Greene, Peter Hen le, Linda Ittner, Gary Lefkowitz, James Mattesich, Maureen McCarthy, Gail Rosenberg, Robert Rosenberg, Frank Schiff, Alfred Tel la, Joyce Radke, Howard Rosen, Bernhard Teriet, Gordon Winston, James Wright, Casey Young and John Zalusky.
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