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Worktime Regulations and Spousal Labour Supply

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  • Goux, Dominique

    ()
    (CREST-INSEE)

  • Maurin, Eric

    ()
    (Paris School of Economics)

  • Petrongolo, Barbara

    ()
    (Queen Mary, University of London)

Abstract

We investigate spillovers in spousal labour supply exploiting independent variation in hours worked generated by the introduction of the shorter workweek in France in the late 1990s. We find that female and male employees treated by the shorter legal workweek reduce their weekly labour 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 workweek by about half an hour to one hour, according to specifications and samples. In particular, managers and professionals respond much more strongly to the shorter legal workweek in their wives’ firms than men in lower occupations. These effects are consistent with the presence of significant cross-hour effects on labour supply for husbands, though not for wives.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5639.

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Length: 43 pages
Date of creation: Apr 2011
Date of revision:
Publication status: published in American Economic Review, 2014,104, 252-276.
Handle: RePEc:iza:izadps:dp5639

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Keywords: workweek reduction; labour supply; spill-over effects;

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References

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  1. Abowd, John M. & Kramarz, Francis, 1999. "The analysis of labor markets using matched employer-employee data," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 40, pages 2629-2710 Elsevier.
  2. Gelber, Alexander, 2010. "Taxation and the Earnings of Husbands and Wives," MPRA Paper 20345, University Library of Munich, Germany.
  3. Cullen, Julie Berry & Gruber, Jonathan, 2000. "Does Unemployment Insurance Crowd Out Spousal Labor Supply?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 18(3), pages 546-72, July.
  4. Entorf, Horst & Gollac, Michel & Kramarz, Francis, 1997. "New Technologies, Wages and Worker Selection," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1761, C.E.P.R. Discussion Papers.
  5. Askenazy, Philippe, 2008. "A Primer on the 35-Hour in France, 1997–2007," IZA Discussion Papers 3402, Institute for the Study of Labor (IZA).
  6. Estevão, Marcello & Sa, Filipa, 2006. "Are the French Happy with the 35-Hour Workweek?," IZA Discussion Papers 2459, Institute for the Study of Labor (IZA).
  7. M Gelber, Alexander, 2011. "Taxation and the Earnings of Husbands and Wives: Evidence from Sweden," Working Paper Series, Center for Fiscal Studies, Uppsala University, Department of Economics 2012:4, Uppsala University, Department of Economics.
  8. Goux, Dominique & Maurin, Eric, 1999. "Persistence of Interindustry Wage Differentials: A Reexamination Using Matched Worker-Firm Panel Data," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 17(3), pages 492-533, July.
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Cited by:
  1. Caroli, Eve & Bassanini, Andrea, 2014. "Is work bad for health? The role of constraint vs choice," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/12483, Paris Dauphine University.
  2. Tominey, Emma, 2013. "Maternity Leave and the Responsiveness of Female Labor Supply to a Household Shock," IZA Discussion Papers 7462, Institute for the Study of Labor (IZA).
  3. Lee, Jungmin & Kawaguchi, Daiji & Hamermesh, Daniel S., 2011. "Aggregate Impacts of a Gift of Time," IZA Discussion Papers 6199, Institute for the Study of Labor (IZA).
  4. Daniel S. Hamermesh & Daiji Kawaguchi & Jungmin Lee, 2014. "Does Labor Legislation Benefit Workers? Well-Being after an Hours Reduction," NBER Working Papers 20398, National Bureau of Economic Research, Inc.
  5. Ziebarth, Nicolas R. & Karlsson, Martin, 2013. "The Effects of Expanding the Generosity of the Statutory Sickness Insurance System," IZA Discussion Papers 7250, Institute for the Study of Labor (IZA).
  6. Daiji Kawaguchi & Jungmin Lee & Daniel S. Hamermesh, 2012. "A Gift of Time," NBER Working Papers 18643, National Bureau of Economic Research, Inc.
  7. Philippe Askenazy, 2013. "Working time regulation in France from 1996 to 2012," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 37(2), pages 323-347.
  8. Bryan, Mark L. & Longhi, Simonetta, 2013. "Couples' Labour Supply Responses to Job Loss: Boom and Recession Compared," IZA Discussion Papers 7775, Institute for the Study of Labor (IZA).
  9. Bryan, Mark L. & Longhi, Simonetta, 2013. "Couples’ labour supply responses to job loss: boom and recession compared," ISER Working Paper Series 2013-20, Institute for Social and Economic Research.
  10. Emma Tominey, 2013. "Maternity Leave and the Responsiveness of Female Labor Supply to a Household Shock," Working Papers, Human Capital and Economic Opportunity Working Group 2013-016, Human Capital and Economic Opportunity Working Group.

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