IDEAS home Printed from https://ideas.repec.org/a/eee/eecrev/v182y2026ics0014292125002703.html

Labor-market effects of introducing the 8-hour workday

Author

Listed:
  • Gunnesmo, Marius F.
  • Hansen, Casper W.

Abstract

In 1919, the Danish craft and industrial sector permanently adopted the 8-hour workday, representing the largest reduction in working hours in the country’s history. We collected quarterly data on hourly wages and employment from 1914 to 1931 across occupation groups, covering Copenhagen and the aggregate of the provinces in Denmark. By exploiting variation in percent work-time reductions across occupation groups and regions, we examine the income and employment effects of the reform. Our findings reveal only a compensating rise in hourly wages in Copenhagen, though this increase was insufficient to offset the decline in weekly earnings due to fewer working hours. Furthermore, we observe that the reduction in working hours was mitigated by new hires, particularly of unskilled workers. Overall, our results suggest that reductions in working hours were not (in any region) fully compensated by gains in hourly wages but tend to support the “work-sharing” hypothesis.

Suggested Citation

  • Gunnesmo, Marius F. & Hansen, Casper W., 2026. "Labor-market effects of introducing the 8-hour workday," European Economic Review, Elsevier, vol. 182(C).
    • Handle: RePEc:eee:eecrev:v:182:y:2026:i:c:s0014292125002703
    DOI: 10.1016/j.euroecorev.2025.105220
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0014292125002703
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.euroecorev.2025.105220?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Du Zaichao & Yin Hua & Zhang Lin, 2013. "The macroeconomic effects of the 35-h workweek regulation in France," The B.E. Journal of Macroeconomics, De Gruyter, vol. 13(1), pages 881-901, June.
    2. Matthieu Chemin & Etienne Wasmer, 2009. "Using Alsace-Moselle Local Laws to Build a Difference-in-Differences Estimation Strategy of the Employment Effects of the 35-Hour Workweek Regulation in France," SciencePo Working papers hal-03461753, HAL.
    3. Holt, Andrew Chase, 2024. "Monopsony power in the United States: Evidence from the great depression," Explorations in Economic History, Elsevier, vol. 92(C).
    4. Bruno Crepon & Francis Kramarz, 2002. "Employed 40 Hours or Not Employed 39: Lessons from the 1982 Mandatory Reduction of the Workweek," Journal of Political Economy, University of Chicago Press, vol. 110(6), pages 1355-1389, December.
    5. Matthieu Chemin & Etienne Wasmer, 2009. "Using Alsace-Moselle Local Laws to Build a Difference-in-Differences Estimation Strategy of the Employment Effects of the 35-Hour Workweek Regulation in France," Journal of Labor Economics, University of Chicago Press, vol. 27(4), pages 487-524, October.
    6. Schmick, Ethan, 2018. "Collective Action and the Origins of the American Labor Movement," The Journal of Economic History, Cambridge University Press, vol. 78(3), pages 744-784, September.
    7. Collewet, Marion & Sauermann, Jan, 2017. "Working hours and productivity," Labour Economics, Elsevier, vol. 47(C), pages 96-106.
    8. Daron Acemoglu, 2010. "When Does Labor Scarcity Encourage Innovation?," Journal of Political Economy, University of Chicago Press, vol. 118(6), pages 1037-1078.
    9. Atack, Jeremy & Bateman, Fred & Margo, Robert A., 2003. "Productivity in manufacturing and the length of the working day: evidence from the 1880 census of manufactures," Explorations in Economic History, Elsevier, vol. 40(2), pages 170-194, April.
    10. John Pencavel, 2015. "The Productivity of Working Hours," Economic Journal, Royal Economic Society, vol. 125(589), pages 2052-2076, December.
    11. Molinder, Jakob & Karlsson, Tobias & Enflo, Kerstin, 2022. "Social democracy and the decline of strikes," Explorations in Economic History, Elsevier, vol. 83(C).
    12. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    13. Moshe Hazan, 2009. "Longevity and Lifetime Labor Supply: Evidence and Implications," Econometrica, Econometric Society, vol. 77(6), pages 1829-1863, November.
    14. repec:spo:wpmain:info:hdl:2441/10198 is not listed on IDEAS
    15. 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.
    16. Molinder, Jakob & Karlsson, Tobias & Enflo, Kerstin, 2021. "More Power to the People: Electricity Adoption, Technological Change, and Labor Conflict," The Journal of Economic History, Cambridge University Press, vol. 81(2), pages 481-512, June.
    17. John Pencavel, 2016. "Recovery from Work and the Productivity of Working Hours," Economica, London School of Economics and Political Science, vol. 83(332), pages 545-563, October.
    18. Erik Bengtsson & Jakob Molinder, 2017. "The economic effects of the 1920 eight-hour working day reform in Sweden," Scandinavian Economic History Review, Taylor & Francis Journals, vol. 65(2), pages 149-168, May.
    19. Pencavel, John H., 2016. "Recovery from Work and the Productivity of Working Hours," IZA Discussion Papers 10103, IZA Network @ LISER.
    20. Price Fishback & Chris Vickers & Nicolas L. Ziebarth, 2024. "Labor Market Effects of Workweek Restrictions: Evidence from the Great Depression," American Economic Journal: Macroeconomics, American Economic Association, vol. 16(4), pages 77-113, October.
    21. Skoglund, William, 2025. "Union wage effects in Sweden: Evidence from the interwar period," Explorations in Economic History, Elsevier, vol. 96(C).
    22. repec:bla:ecpoli:v:23:y:2008:i::p:417-463 is not listed on IDEAS
    23. 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.
    24. Marcello Estevão & Filipa Sá, 2008. "The 35-hour workweek in France: Straightjacket or welfare improvement? [‘L’evolution des rythmes de travail entre 1995 et 2001: quel impact de l’ARTT?’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 23(55), pages 418-463.
    25. Calmfors, Lars, 1985. "Work sharing, employment and wages," European Economic Review, Elsevier, vol. 27(3), pages 293-309.
    26. Bruno Caprettini & Hans-Joachim Voth, 2020. "Rage against the Machines: Labor-Saving Technology and Unrest in Industrializing England," American Economic Review: Insights, American Economic Association, vol. 2(3), pages 305-320, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kentaro Asai, 2022. "Working Hour Reform, Labor Demand and Productivity," PSE Working Papers halshs-03728157, HAL.
    2. 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.
    3. 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.
    4. Sun, Ang & Sun, Wei & Xiang, Wang & Zhang, Huili & Zhang, Junsen, 2026. "Narrowing or widening the gender gap in market and domestic work? The impact of workweek reduction reform in China," Journal of Development Economics, Elsevier, vol. 179(C).
    5. Kentaro Asai, 2022. "Working Hour Reform, Labor Demand and Productivity," Working Papers halshs-03728157, HAL.
    6. Pauline Carry, 2022. "The Effects of the Legal Minimum Working Time on Workers, Firms and the Labor Market," Sciences Po Economics Publications (main) hal-04067393, HAL.
    7. Kawaguchi, Daiji & Naito, Hisahiro & Yokoyama, Izumi, 2017. "Assessing the effects of reducing standard hours: Regression discontinuity evidence from Japan," Journal of the Japanese and International Economies, Elsevier, vol. 43(C), pages 59-76.
    8. DeVaro, Jed, 2025. "Work schedules," Journal of Economic Behavior & Organization, Elsevier, vol. 238(C).
    9. Philippe Askenazy, 2013. "Working time regulation in France from 1996 to 2012," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 37(2), pages 323-347.
    10. WooRam Park & Yoonsoo Park, 2019. "When Less is More: The Impact of the Regulation on Standard Workweek on Labor Productivity in South Korea," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 38(3), pages 681-705, June.
    11. Stéphane Carcillo & Alexander Hijzen & Stefan Thewissen, 2024. "The limitations of overtime limits to reduce long working hours: Evidence from the 2018 to 2021 working time reform in Korea," British Journal of Industrial Relations, London School of Economics, vol. 62(1), pages 98-126, March.
    12. Pauline Carry, 2022. "The Effects of the Legal Minimum Working Time on Workers, Firms and the Labor Market," Working Papers hal-04067393, HAL.
    13. 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.
    14. Molinder, Jakob & Karlsson, Tobias & Enflo, Kerstin, 2022. "Social democracy and the decline of strikes," Explorations in Economic History, Elsevier, vol. 83(C).
    15. Ronald L. Oaxaca & Galiya Sagyndykova, 2020. "The effect of overtime regulations on employment," World of Labour, LISER, pages 1-89, December.
    16. Fang, Tony & Lin, Carl & Tang, Xueli, 2018. "How Has the Two-Day Weekend Policy Affected Labour Supply and Household Work in China?," IZA Discussion Papers 11698, IZA Network @ LISER.
    17. Nicola Breugst & Holger Patzelt & Dean A. Shepherd, 2020. "When is Effort Contagious in New Venture Management Teams? Understanding the Contingencies of Social Motivation Theory," Journal of Management Studies, Wiley Blackwell, vol. 57(8), pages 1556-1588, December.
    18. Pedro S. Martins, 2016. "Can overtime premium flexibility promote employment? Firm-and worker-level evidence from a labour law reform," Nova SBE Working Paper Series wp607, Universidade Nova de Lisboa, Nova School of Business and Economics.
    19. DeVaro, Jed & Kim, Jin-Hyuk & Wagman, Liad & Wolff, Ran, 2018. "Motivation and performance of user-contributors: Evidence from a CQA forum," Information Economics and Policy, Elsevier, vol. 42(C), pages 56-65.
    20. Martins, Pedro S., 2017. "Economic effects of overtime premium flexibility: Firm- and worker-level evidence from a law reform," GLO Discussion Paper Series 102, Global Labor Organization (GLO).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eecrev:v:182:y:2026:i:c:s0014292125002703. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eer .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.