People are more productive by working less, says Nobel Prize in Economics

People are more productive when the daily and weekly working hours are lower. But reducing the work schedule is a change that needs to be thought about with the private sector, and not decided by the government.

"We need to listen to everyone. Reducing the workload has been happening from time to time throughout history. And it will continue to happen. But it is not something that should be imposed", said Christopher Pissarides, 2010 Nobel Prize in Economics and interviewed on Capital Insights, an interview program resulting from the partnership between Broadcast and CNN Brasil Money.

The professor, who is a global reference in the labor market and employment policies, states that it is wrong to say that reducing the work schedule, such as that approved by the National Congress, will generate inflation.

He argues that this is a hasty statement and that the change in working hours generates different effects, depending on many conditions in the economy and the country.

In the interview, the Nobel laureate and professor at the London School of Economics stated that he was against the model of employee remuneration per hour worked. He says that, when it opts for this model, the company transfers the business risk to the worker. "The business risk belongs to the company", he says.

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The Nobel Prize winner in Economics also declared that he was against the individual negotiation of employment contracts, workers' rights and duties. "The employee will always be in a situation of less strength than the company", he said.

Therefore, contract negotiation must be carried out by professional unions and collectively for the mass of workers, according to Pissarides.

For senior vacancies and management roles, Pissarides understands that negotiations can be made individually. "It's already done like that", he says.

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Source: CNN