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Do reductions of standard hours a§ect employment transitions?: Evidence from Chile

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  • Sanchez, Rafael

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 signiÖcant e§ects 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 specifications.

Suggested Citation

  • Sanchez, Rafael, 2010. "Do reductions of standard hours a§ect employment transitions?: Evidence from Chile," Economic Research Papers 271182, University of Warwick - Department of Economics.
    • Handle: RePEc:ags:uwarer:271182
    DOI: 10.22004/ag.econ.271182
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    Cited by:

    1. 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.
    2. Rafael Sánchez, 2017. "Does a Mandatory Reduction of Standard Working Hours Improve Employees' Health Status?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(1), pages 3-39, January.
    3. 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.

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    More about this item

    Keywords

    Financial Economics;

    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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