Holger Görg, Olivier Godart, Aoife Hanley, Christiane Krieger-Boden, 08 July 2014

Many firms are replacing traditional working hours with more flexible arrangements, reflecting new thinking on employee motivation. This column presents evidence from Germany that trust-based working time is associated with increased innovation. However, trust-based working hours also contribute to the blurring of workers’ professional and private lives, and may lead to excessive overtime. Careful design of trust-based working arrangements is required to reap the innovations gains while avoiding the health pitfalls.

Luca Anderlini, Leonardo Felli, Alessandro Riboni, 13 June 2011

Which legal institutions are best equipped to deal with the challenges of new technologies? The authors of CEPR DP8433 find a tradeoff between commitment and flexibility in the evolution of legal systems. Rigid legal systems, they argue, cope best with new technological developments because they help resolve credible commitment problems. At later stages of technological development, flexible systems improve welfare and increase innovation and output growth.


CEPR Policy Research