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How working time reduction affects jobs and wages

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  • Raposo, Pedro S.
  • van Ours, Jan C.

Abstract

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.

Suggested Citation

  • Raposo, Pedro S. & van Ours, Jan C., 2010. "How working time reduction affects jobs and wages," Economics Letters, Elsevier, vol. 106(1), pages 61-63, January.
    • Handle: RePEc:eee:ecolet:v:106:y:2010:i:1:p:61-63
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    References listed on IDEAS

    as
    1. Jennifer Hunt, 1999. "Has Work-Sharing Worked in Germany?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 117-148.
    2. Mikal Skuterud, 2007. "Identifying the Potential of Work-Sharing as a Job-Creation Strategy," Journal of Labor Economics, University of Chicago Press, vol. 25(2), pages 265-287.
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    Citations

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    Cited by:

    1. Carlos Oliveira, 2024. "Income and wage inequality in democratic Portugal, 1974–2020," Fiscal Studies, John Wiley & Sons, vol. 45(3), pages 393-414, September.
    2. Cyprien Batut & Andrea Garnero & Alessandro Tondini, 2023. "The employment effects of working time reductions: Sector‐level evidence from European reforms," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 62(3), pages 217-232, July.
    3. Pedro Raposo & Jan Ours, 2010. "How a Reduction of Standard Working Hours Affects Employment Dynamics," De Economist, Springer, vol. 158(2), pages 193-207, June.
    4. Arvind Ashta, 2017. "Work-sharing from Different Angles: A literature review," Working Papers CEB 17-033, ULB -- Universite Libre de Bruxelles.
    5. Pauline Carry, 2022. "The Effects of the Legal Minimum Working Time on Workers, Firms and the Labor Market," Working Papers hal-04067393, HAL.
    6. Marta C.Lopes & Alessandro Tondini, 2022. "Firm-Level Effects of Reductions in Working Hours," FBK-IRVAPP Working Papers 2022-05, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    7. Lonnie Golden & Stuart Glosser, 2013. "Work sharing as a potential policy tool for creating more and better employment: A review of the evidence," Chapters, in: Jon C. Messenger & Naj Ghosheh (ed.), Work Sharing during the Great Recession, chapter 7, pages 203-258, Edward Elgar Publishing.
    8. Pauline Carry, 2022. "The Effects of the Legal Minimum Working Time on Workers, Firms and the Labor Market," SciencePo Working papers Main hal-04067393, HAL.
    9. Jean‐François Fagnart & Marc Germain & Bruno Van der Linden, 2023. "Working time reduction and employment in a finite world," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(1), pages 170-207, January.
    10. Sánchez, Rafael, 2013. "Do reductions of standard hours affect employment transitions?: Evidence from Chile," Labour Economics, Elsevier, vol. 20(C), pages 24-37.
    11. Kimin Kim & Myoung-jae Lee, 2019. "Difference in differences in reverse," Empirical Economics, Springer, vol. 57(3), pages 705-725, September.
    12. Stefan Marth, 2015. "How Strong is the Correlation Between Unemployment and Growth Really? The Persistence of Okun's Law and How to Weaken it. WWWforEurope Policy Paper No. 23," WIFO Studies, WIFO, number 58260.
    13. Lepinteur, Anthony, 2019. "The shorter workweek and worker wellbeing: Evidence from Portugal and France," Labour Economics, Elsevier, vol. 58(C), pages 204-220.
    14. Portugal, Pedro & Raposo, Pedro, 2015. "Seriously Strengthening the Tax-Benefit Link," IZA Discussion Papers 8785, Institute of Labor Economics (IZA).
    15. Charles C. Brown & Daniel S. Hamermesh, 2019. "Wages and Hours Laws: What Do We Know? What Can Be Done?," NBER Working Papers 25942, National Bureau of Economic Research, Inc.
    16. Sagyndykova, Galiya & Oaxaca, Ronald L., 2019. "Raising the Overtime Premium and Reducing the Standard Workweek: Short-Run Impacts on U.S. Manufacturing," IZA Discussion Papers 12557, Institute of Labor Economics (IZA).
    17. Alexander Luttmann & Cody Nehiba, 2020. "The Effects of Employee Hours‐of‐Service Regulations on the U.S. Airline Industry," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(4), pages 1043-1075, September.
    18. Martyn Andrews & Hans-Dieter Gerner & Thorsten Schank & Richard Upward, 2015. "More hours, more jobs? The employment effects of longer working hours," Oxford Economic Papers, Oxford University Press, vol. 67(2), pages 245-268.
    19. Kentaro Asai, 2022. "Working Hour Reform, Labor Demand and Productivity," Working Papers halshs-03728157, HAL.
    20. Kentaro Asai, 2022. "Working Hour Reform, Labor Demand and Productivity," PSE Working Papers halshs-03728157, HAL.

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