Worktime Regulations and Spousal Labor Supply
AbstractWe investigate cross-hour effects in spousal labor supply exploiting independent variation in hours worked generated by the introduction of the short workweek in France in the late 1990s. We find that female and male employees treated by the shorter legal workweek reduce their weekly labor supply by about 2 hours, and do not experience any reduction in their monthly earnings. While wives of treated men do not seem to adjust their working time at either the intensive or extensive margins, husbands of treated wives respond by cutting their labor supply by about half an hour to one hour per week, according to specifications and samples. Further tests reveal that husbands' labor supply response did not entail the renegotiation of usual hours with employers or changes in earnings, but involved instead a reduction in (unpaid) work involvement, whether within a given day, or through an increase in the take-up rate of paid vacation and/or sick leave. These margins of adjustment are shown to have no detrimental impact on men's (current) earnings. The estimated cross-hour effects are consistent with the presence of spousal leisure complementarity for husbands, though not for wives.
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Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp1096.
Date of creation: Nov 2011
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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
Spousal labor supply; cross-hour effects; workweek reduction;
Other versions of this item:
- Goux, Dominique & Maurin, Eric & Petrongolo, Barbara, 2011. "Worktime regulations and spousal labor supply," CEPR Discussion Papers 8666, C.E.P.R. Discussion Papers.
- Dominique Goux & Eric Maurin & Barbara Petrongolo, 2013. "Worktime Regulations and Spousal Labor Supply," Working Papers 709, Queen Mary, University of London, School of Economics and Finance.
- Goux, Dominique & Maurin, Eric & Petrongolo, Barbara, 2011. "Worktime Regulations and Spousal Labour Supply," IZA Discussion Papers 5639, Institute for the Study of Labor (IZA).
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
- J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-28 (All new papers)
- NEP-EUR-2011-11-28 (Microeconomic European Issues)
- NEP-LAB-2011-11-28 (Labour Economics)
- NEP-LMA-2011-11-28 (Labor Markets - Supply, Demand, & Wages)
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