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A review of the traditional doctrines concerning working time that are influencing political and intellectual attitudes. The authors illustrate and explain how tools of microeconomic analysis must be modified to better explain the terms of contemporary labour contracts. They introduce powerful concepts such as a generalized production function, cost structure, compensating wage and trade union negotiation, to highlight the scope for political intervention on working time. Emphasis is placed on the analysis of legal time reductions as an employment policy.