This is the view that appears to have emerged from the Rio summit. In the pages which follow, I explore the obstacles and opportunities to a trajectory in which productivity growth in the North is channelled into shorter working hours, rather than higher income. As the table clearly shows, the 'extent' of hours reduction has fallen substantially in all countries except Germany. German Japan Netherlands UK US 1. Angus Maddison, 'Growth and Slowdown in Advanced Capitalist Economies' journal of Economic Literature, vol XXV, no 2, June 1987.
Annual hours are hours worked per person per year.
Labour productivity is GDP per hour worked My own estimates for the United States suggest that Maddison may have overstated the hours decline. Similarly, in Japan, hours have most probably risen since 1973. The simple neoclassical model begins with individuals' preference functions. Employers offer job schedules which conform to individuals' preferences. This so-called 'worker sovereignty' in the labour market is ensured by competition.