Wishing to Work More? Preferences, Constraints, and Hours Worked

Using data from the French Labor Force Survey, we show that 21.2% of workers experience an hours gap, meaning they work fewer hours than they would prefer at their current wage. This stands in sharp contrast to recent evidence from Germany, where most workers report being overworked. In France, hours gaps are concentrated among low-income part-time workers and remain stable over time. We argue that cross-country differences in labor market institutions - including minimum wage policies, working-time regulations, and unemployment insurance - are central to shaping both realized hours and the distribution of hours gaps. While hours gaps appear inefficient in standard labor supply models, they may reflect constrained-efficient outcomes in the presence of frictions. Understanding the mechanisms that generate hours gaps is crucial for evaluating the welfare effects of hours based policy interventions.