What did I tell you in 2005? "Huh? I'll never lack for work explaining the backward-bending labor supply curve. The Left and the Right have been trading shots for years over whether it's unions or economic growth that contributed to rising wages, and whether the shorter workweek antedated the Fair Labor Standards Act." Did I change my mind in 2011? "That's long been a pet cause at Cold Spring Shops, although it's something more likely to emerge out of a multitude of small decisions long before any new Fair Labor Standards Act codifies it."Politicians, of course, will seek to claim credit for emergent phenomena, or to codify them as it is convenient. Case in point: Crazy Bernie. "With exploding technology and increased worker productivity, it's time to move toward a four-day work week with no loss of pay. Workers must benefit from technology, not just corporate CEOs." The man is too old to change his thinking, and he's probably got no sensible answer to "entrepreneurs get rich by improving working conditions and lowering prices." He's accordingly going to miss the emergence present in the study he's reacting to.
A large-scale pilot program, spanning over 3,000 workers, found that workers slept better, firms made more money, and employees were less likely to say they did not have enough time to care for loved ones.These results are all based on small samples, and generalization is hazardous. On the other hand, a testable implication of the way people behave when they sell from their endowments is precisely that the income effect of selling a more valuable endowment might lead to people selling less from that endowment to trade for other stuff.
As the Washington Post reports, most of the companies involved in the pilot plan on continuing to use a four-day work week.
The concept of a four-day work week has increasingly caught on over the last few years, with firms and researchers alike taking the plunge to cut back hours without reducing pay.
As Insider reported in December, 4 Day Week Global — a New Zealand-based nonprofit — conducted a study involving 33 participating companies that employed 969 people based in the US, Australia, Ireland, the United Kingdom, New Zealand, who adopted a four-day work week in a pilot program over a six-month period, and it found it was a "resounding success on virtually every dimension."
"Companies are extremely pleased with their performance, productivity and overall experience, with almost all of them already committing or planning to continue with the 4 day week schedule," the report said.
"Revenue has risen over the course of the trial. Sick days and absenteeism are down," it continued. "Companies are hiring. Resignations fell slightly, a striking finding during the 'Great Resignation.' Employees are similarly enthusiastic. And climate impacts, while less well-measured, are also encouraging."
Political types, however, will want to get out in front of the shift and call it leadership.
This isn't the first time a four-day work week has caught the attention of lawmakers — the Congressional Progressive Caucus previously endorsed the "32-Hour Workweek Act," with Caucus Chair Pramila Jayapal saying in a statement at the time that it's "past time that we put people and communities over corporations and their profits — finally prioritizing the health, wellbeing, and basic human dignity of the working class rather than their employers' bottom line."That last sentence is a non-sequitur, or perhaps it undoes all the talk about corporations over communities. A job description that involves a comfortable salary and more time to enjoy it will connect a lot of workers with new jobs, irrespective of what the so-called progressives in Congress enact. There might even be Chamber of Commerce types pushing for bipartisan support for such a law, perhaps because as a mandate it raises the costs of smaller competitors.
Rep. Mark Takano, a Democrat from California, proposed that legislation. He previously told Insider that a 32-hour work week — which would become the new standard under his proposal — would help Americans craft the new normal of work that they've been demanding.
"I think there was a Great Realization among a lot of Americans — how hard they're working and that they wanted to move on from the jobs that they were working at," Takano said. "So a four-day work week is something that connects a lot of Americans."

