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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. Hunt, Jennifer, 1997. "Has Work Sharing Worked in Germany?," CEPR Discussion Papers 1553, C.E.P.R. Discussion Papers.
  2. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier.
  3. M. J. Andrews & T. Schank & R. Simmons, 2005. "Does Worksharing Work? Some Empirical Evidence From The Iab-Establishment Panel," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(2), pages 141-176, 05.
  4. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-in-Differences Estimates?," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 249-275, February.
  5. Marimon, Ramon & Zilibotti, Fabrizio, 2000. "Employment and distributional effects of restricting working time," European Economic Review, Elsevier, vol. 44(7), pages 1291-1326, June.
  6. 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.
  7. 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.
  8. Mikal Skuterud, 2007. "Identifying the Potential of Work-Sharing as a Job-Creation Strategy," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 265-287.
  9. Marcello Estev�o & Filipa Sá, 2008. "The 35-hour workweek in France: Straightjacket or welfare improvement?," Economic Policy, CEPR & CES & MSH, vol. 23, pages 417-463, 07.
  10. Alan Manning, 2010. "Imperfect competition in the labour market," LSE Research Online Documents on Economics 28729, London School of Economics and Political Science, LSE Library.
  11. Cardoso, Ana Rute, 2006. "Wage mobility: do institutions make a difference?," Labour Economics, Elsevier, vol. 13(3), pages 387-404, June.
  12. 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, vol. 27(4), pages 487-524, October.
  13. Raposo, Pedro & van Ours, Jan C., 2008. "How Working Time Reduction Affects Employment and Earnings," IZA Discussion Papers 3723, Institute for the Study of Labor (IZA).
  14. Calmfors, Lars & Hoel, Michael, 1988. " Work Sharing and Overtime," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(1), pages 45-62.
  15. Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-45, September.
  16. 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.
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