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Do reductions of standard hours affect employment transitions? : Evidence from Chile

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  • Sánchez, Rafael

    (University of Warwick)

Abstract

This study exploits the reduction of weekly working hours from 48 to 45 occured in Chile in January 2005. We use this pure and exogenous policy change to identify the employment effects of such a policy. Our main contribution is that we overcome the problems of previous studies such as : selection between hours and employment, lack of identification strategy due to the joint implementation of policies and lack of crucial variables (like hourly wages and usual hours). Our results suggest no significant effects of a reduction of standard hours on employment transitions and a significant effect on hourly wages (i.e. wage compensation). These results are robust to several specifiations.

Suggested Citation

  • Sánchez, Rafael, 2010. "Do reductions of standard hours affect employment transitions? : Evidence from Chile," The Warwick Economics Research Paper Series (TWERPS) 925, University of Warwick, Department of Economics.
  • Handle: RePEc:wrk:warwec:925
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
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    6. Calmfors, Lars & Hoel, Michael, 1988. " Work Sharing and Overtime," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(1), pages 45-62.
    7. 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.
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    More about this item

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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