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Effects of a national work hours restriction in a high hours country

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  • Lee Jieun

    (University of Colorado Boulder, Boulder, CO 80309, USA)

Abstract

This paper examines the effect of a new maximum work hour restriction introduced in South Korea in 2018 that limited maximum working hours from 68 h/week to 52 h/week. I use difference-in-differences analysis with continuous treatment measuring the prevalence of those working longer than 52 h/week prior to the policy change across industry-occupation-education groups. I find that the policy reduces work hours while increasing monthly earnings and hourly wages for male full-time workers. However, I find that the policy does not significantly affect total work hours, total employment, and total worker pay at the industry-occupation-education group level.

Suggested Citation

  • Lee Jieun, 2022. "Effects of a national work hours restriction in a high hours country," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-18, January.
    • Handle: RePEc:vrs:izajlp:v:12:y:2022:i:1:p:18:n:1
    DOI: 10.2478/izajolp-2022-0006
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    References listed on IDEAS

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    1. 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.
    2. Jennifer Hunt, 1999. "Has Work-Sharing Worked in Germany?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 117-148.
    3. Dora L. Costa, 2000. "Hours of Work and the Fair Labor Standards Act: A Study of Retail and Wholesale Trade, 1938–1950," ILR Review, Cornell University, ILR School, vol. 53(4), pages 648-664, July.
    4. Santos Raposo, P.M. & van Ours, J.C., 2008. "How Working Time Reduction Affects Employment and Earnings," Other publications TiSEM 1f9a2c0d-128d-4137-9bfa-e, Tilburg University, School of Economics and Management.
    5. repec:hal:spmain:info:hdl:2441/10198 is not listed on IDEAS
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    More about this item

    Keywords

    Work hour restriction; Labor regulation; Difference-in-differences with continuous treatment; South Korea;
    All these keywords.

    JEL classification:

    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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