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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

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  • Matthieu Chemin

    (McGill Department of Economics)

  • Etienne Wasmer

    (Département d'économie)

Abstract

France's 1998 implementation of the 35-hour workweek has been one of the greatest regulatory shocks on labor markets. Few studies evaluate the impact of this regulation because of a lack of identification strategies. For historical reasons due to the way Alsace-Moselle was returned to France in 1918, the implementation of France's 35-hour workweek was less stringent in that region than in the rest of the country, which is confirmed by double and triple differences. Yet it shows no significant difference in employment with the rest of France, which casts doubt on the effectiveness of this regulation.

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  • 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," Sciences Po publications info:hdl:2441/10198, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/10198
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    1. Boeri, Tito & Burda, Michael & Kramarz, Francis (ed.), 2008. "Working Hours and Job Sharing in the EU and USA: Are Europeans Lazy? Or Americans Crazy?," OUP Catalogue, Oxford University Press, number 9780199231027.
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    5. Marcello M. Estevão & Filipa G Sa, 2006. "Are the French Happy with the 35-Hour Workweek?," IMF Working Papers 06/251, International Monetary Fund.
    6. Marimon, Ramon & Zilibotti, Fabrizio, 2000. "Employment and distributional effects of restricting working time," European Economic Review, Elsevier, vol. 44(7), pages 1291-1326, June.
    7. Ehrenberg, Ronald G., 1971. "Heterogeneous labor, the internal labor market, and the dynamics of the employment-hours decision," Journal of Economic Theory, Elsevier, vol. 3(1), pages 85-104, March.
    8. 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.
    9. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
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