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How a Reduction of Standard Working Hours Affects Employment Dynamics

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  • Pedro Raposo

    ()

  • Jan Ours

    ()

Abstract

On December 1, 1996, a new law was implemented in Portugal to gradually reduce the stan- dard working week from 44 to 40 hours. We study how this mandatory reduction affected employment through job creation and job destruction. We find evidence that the working hours reduction had a positive effect on employment through a fall in job destruction.

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File URL: http://hdl.handle.net/10.1007/s10645-010-9142-5
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Bibliographic Info

Article provided by Springer in its journal De Economist.

Volume (Year): 158 (2010)
Issue (Month): 2 (June)
Pages: 193-207

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Handle: RePEc:kap:decono:v:158:y:2010:i:2:p:193-207

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Web page: http://www.springerlink.com/link.asp?id=100260

Related research

Keywords: workweek reduction; policy reform; employment dynamics; J22; J63; J81;

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  1. Manning, Alan, 2011. "Imperfect Competition in the Labor Market," Handbook of Labor Economics, Elsevier, Elsevier.
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  5. Cardoso, Ana Rute, 2004. "Wage Mobility: Do Institutions Make a Difference? A Replication Study Comparing Portugal and the UK," CEPR Discussion Papers 4355, C.E.P.R. Discussion Papers.
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  8. Marimon, R. & Zilibotti, F., 1999. "Employment and Distributional Effects of Restricting Working Time," Economics Working Papers eco99/19, European University Institute.
  9. Matthieu Chemin & Etienne Wasmer, 2009. "Using Alsace-Moselle Local Laws to Build a Difference-in-Differences Estimation Strategy of the Employment Effects of the 35-Hour Workweek Regulation in France," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 27(4), pages 487-524, October.
  10. Santos Raposo, P.M. & Ours, J.C. van, 2008. "How Working Time Reduction Affects Employment and Earnings," Discussion Paper, Tilburg University, Center for Economic Research 2008-81, Tilburg University, Center for Economic Research.
  11. Marcello Estev�o & Filipa Sá, 2008. "The 35-hour workweek in France: Straightjacket or welfare improvement?," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 23, pages 417-463, 07.
  12. Pedro Portugal & Olivier Blanchard, 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and U.S. Labor Markets," American Economic Review, American Economic Association, vol. 91(1), pages 187-207, March.
  13. Calmfors, Lars & Hoel, Michael, 1988. " Work Sharing and Overtime," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(1), pages 45-62.
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  15. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier.
  16. Raposo, Pedro S. & van Ours, Jan C., 2010. "How working time reduction affects jobs and wages," Economics Letters, Elsevier, vol. 106(1), pages 61-63, January.
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