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How a Reduction of Standard Working Hours Affects Employment Dynamics

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  • Pedro Raposo

    ()

  • Jan Ours

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Abstract

On December 1, 1996, a new law was implemented in Portugal to gradually reduce the stan- dard working week from 44 to 40 hours. We study how this mandatory reduction affected employment through job creation and job destruction. We find evidence that the working hours reduction had a positive effect on employment through a fall in job destruction.
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Suggested Citation

  • 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.
  • Handle: RePEc:kap:decono:v:158:y:2010:i:2:p:193-207
    DOI: 10.1007/s10645-010-9142-5
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    References listed on IDEAS

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    1. Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-245, September.
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    5. Jennifer Hunt, 1999. "Has Work-Sharing Worked in Germany?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 117-148.
    6. John C. Haltiwanger & Scott Schuh, 1999. "Gross job flows between plants and industries," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 41-64.
    7. Marcello Estevão & Filipa Sá, 2008. "The 35-hour workweek in France: Straightjacket or welfare improvement?," Economic Policy, CEPR;CES;MSH, vol. 23, pages 417-463, July.
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    Cited by:

    1. Sánchez, Rafael, 2013. "Do reductions of standard hours affect employment transitions?: Evidence from Chile," Labour Economics, Elsevier, vol. 20(C), pages 24-37.

    More about this item

    Keywords

    workweek reduction; policy reform; employment dynamics; J22; J63; J81;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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