How working time reduction affects jobs and wages
In 1996, by law the maximum standard workweek in Portugal was reduced from 44Â h to 40Â h. We find that for workers involved this change reduced the job separation rate and increased hourly wages, keeping monthly earnings approximately constant. The working hours reduction also affected workers working less than 40Â h per week; they were more likely to lose their job.
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- Matthieu Chemin & Etienne Wasmer, 2009.
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