In the News
Labour market reforms - Four-day week 'a success' in Iceland

11th July 2021
Does cutting the working week help to improve productivity? Here is a good story to link to your study of labour market economics.
Trials of four-day week in Iceland "overwhelming success", researchers say https://t.co/Q93z8KNbYe
— BBC News (UK) (@BBCNews) July 5, 2021
A four-year study involving 2,500 people - or 1% of Iceland's workforce has found that switching from the standard 40 hour working week to a 35 or 36 hour working week with workers still getting the same pay, has not had a negative impact on productivity.
Indeed in some cases, it has improved the measured efficiency of those employed whilst creating the positive spill-overs associated with a better work-life balance.
The trials, in which workers were paid the same amount for shorter hours, took place between 2015 and 2019.
A number of countries are experimenting with reducing the length of the working week and numerous companies are recalibrating both the hours expected from full-time employees together with the split between working from home (WFH) and being based in the office.
It is another aspect of our post-pandemic economy that is worth keeping an eye on.
Public opinion in the UK seems favourable to the idea of trimming working hours. It might be worth noting that cutting hours from 40 to 35 and reducing the working week to four days instead of five also implies working some extra time on the remaining days!
Trials of a four-day working week in Iceland have been an "overwhelming success", according to researchers.
— YouGov (@YouGov) July 6, 2021
We previously found that 64% of UK business people support a four day week, and that workers tend to think it would make them more productive https://t.co/OiSsKuID8M pic.twitter.com/MVgyQ9mAKP
Four-day working week: Iceland shows the long and the short of it https://t.co/42yepqS00y | opinion
— Financial Times (@FT) July 11, 2021
Four-day week? Not if it means a pay cut, say British workers https://t.co/xYneKSs1xN
— Guardian Business (@BusinessDesk) July 12, 2021
You might also like

Bring Back Cedric the Pig!
21st January 2015

Germany's Labour Market Miracle
27th August 2015

Why the Minimum Wage Worked
12th April 2016
Occupational Immobility (Labour Markets)
Topic Videos

10 question multi-choice quiz on Demand and Supply-Side Policies
20th April 2017
Update on the Gender Pay Gap
30th March 2018
Labour Migration: Revision Video Series
Topic Videos