Do reductions of standard hours affect employment transitions? : Evidence from Chile
AbstractThis study exploits the reduction of weekly working hours from 48 to 45 occured in Chile in January 2005. We use this pure and exogenous policy change to identify the employment effects of such a policy. Our main contribution is that we overcome the problems of previous studies such as : selection between hours and employment, lack of identification strategy due to the joint implementation of policies and lack of crucial variables (like hourly wages and usual hours). Our results suggest no significant effects of a reduction of standard hours on employment transitions and a significant effect on hourly wages (i.e. wage compensation). These results are robust to several specifiations.
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Bibliographic InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 925.
Date of creation: 2010
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-05 (All new papers)
- NEP-LAB-2010-02-05 (Labour Economics)
- NEP-LAM-2010-02-05 (Central & South America)
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