Abstract: This paper tests whether volatility in inflation and GDP growth was higher at the ZLB across the period from 1990:1 to 2019:3 as predicted by conventional models. Contrary to the theoretical predictions, volatility was not higher at the ZLB.

Abstract: This paper investigates self-reported wedges between how much people work and how much they want to work, at their current wage. More than two-thirds of full-time workers in German survey data are overworked—usual hours exceed desired hours. We combine this evidence with a simple model of labor supply to assess the welfare consequences of tighter weekly hours limits via willingness-to-pay calculations. According to counterfactuals, the optimal length of the workweek in Germany is 37 hours. Introducing such a cap would raise welfare by .5-1% of GDP. The gains from a shortened workweek are largest for workers who are married, female, college-educated, white-collar, middle aged, and high income. An extended analysis integrates a non-constant wage-hours relationship, falling capital returns, and a shrinking tax base.