Does a four-day workweek actually boost productivity and revenue?
Yes, multiple studies show that a four-day workweek can increase productivity and revenue, not just maintain them. In technology companies in Brazil, firms that reduced the weekly workload saw a 120% increase in revenues in just five months, along with a lighter work environment and improved worker health [4]. This suggests that for many businesses, the productivity gains from a shorter week can more than offset the loss of a working day.
In Australia, legal scholars argue that adopting a four-day workweek could help reverse the country's declining productivity growth, which threatens national prosperity [5]. The key mechanism is that employees working fewer days often focus better, waste less time, and are more engaged during the hours they do work. However, the same research warns that simply cutting a day without reorganizing work can lead to burnout if employees try to cram five days of work into four [2].
Which businesses and workers benefit most from a four-day week?
The four-day workweek is not a one-size-fits-all solution. Evidence from the U.S. shows that four-day schedules are most common among police and firefighters, health care workers, restaurant workers, and those with less education or young children [1]. These are roles where daily fixed costs of commuting or childcare are high, and where concentrated work blocks make sense. In contrast, the model can be harder for workers who rely on steady hourly income or who must extend each day to cover the same workload, raising concerns about burnout [2].
Technology companies in Brazil provide a strong example of success: after implementation, workers reported higher satisfaction and a healthier corporate environment, and productivity rose [4]. But even there, some workers initially struggled to reorganize their personal and professional lives [4]. The key takeaway is that the four-day week works best when employers redesign workflows, not just compress hours.
Do workers have to accept a pay cut for a four-day week?
Historically, there has been a wage penalty for working a four-day week, but that penalty has been shrinking over time. Research tracking U.S. workers from 1973 to 2018 found that the wage penalty for a four-day schedule is greater when such schedules are more common, but the penalty has diminished over the decades [1]. This means that as more businesses adopt the model, the financial trade-off for workers becomes smaller.
The same study shows that the rise of four-day workweeks is driven more by workers' preferences and the daily fixed costs of working (like commuting and childcare) than by employer cost-cutting [1]. In other words, many workers willingly accept a modest pay reduction in exchange for an extra day off. However, for workers who depend on a steady income, the prospect of less pay remains a real concern [2].
Sources used in this answer
Days of Work over a Half Century: The Rise of the Four-Day Workweek
Among U.S. full-time workers, four-day workweeks tripled from 1973 to 2018, adding 7 million workers; the wage penalty for such schedules has diminished over time, and the trend is driven more by worker preferences than production costs.
A Case Study of Reform of the Four Day Work Week System in the UK
A UK case study finds that a four-day week improves work-life balance and job satisfaction but raises concerns about reduced income and burnout if workloads are not adjusted.
The Impact of Technological Change on the Workplace Environment and Employee Health and Countermeasures
Drawing on ILO data, this paper notes that Germany's four-day workweek pilot is an example of flexible schedule optimization that can mitigate health risks from technological change.
The influence of the four-day work week on technology companies in Brazil
Technology companies in Brazil that adopted a four-day workweek saw a 120% increase in revenues within five months, along with higher productivity and worker satisfaction.
Productivity and the four-day work week
An Australian legal analysis argues that a four-day workweek should be seriously pursued by policymakers and employers as a way to boost lagging labour productivity.