ABSTRACT
The compensation issue is a major challenge. If people work 20% fewer hours, they should receive 20% less pay, other things equal. Some people may feel that this is an acceptable price to pay in exchange for greater free time to pursue other activities. If the government wanted to support the shift to a four-day workweek, then it could offer tax benefits to companies in exchange for implementing the shorter workweek. The critical element is to maintain the three-day weekend so that work is not just shifted around in a contractual sense. This arrangement of allowing workers to choose how many hours to work in the range of 32–40 hours per week would provide fewer additional jobs than forcing everyone to take the 32-hour workweek, since unquestionably some people would choose to work overtime rather than dropping to the lower number of hours and lower pay.
