# Elasticity of employment in respect of reduction of working time

If elasticity of employment in respect to working hours is positive then work time reduction decreases employment and the opposite is true if elasticity is negative? I mean if I want to see how employment increases or decreases by reducing working time and spot an elasticity of a positive number that means that the working time reduction, reduced employment? And equally if the elasticity is negative number the working time reduction increased employment?

• Yes this interpretation seems to be fine. You will find detailed discussion of this point in textbooks like Cahuc and Zylberberg. – Bertrand Mar 1 at 16:22