How a Reduction of Standard Working Hours Affects Employment Dynamics

CentER Discussion Paper Series No. 2009-50

20 Pages Posted: 23 Jun 2009 Last revised: 22 Jul 2011

See all articles by Pedro S. Raposo

Pedro S. Raposo

Tilburg University - Center for Economic Research (CentER)

Jan C. van Ours

Tilburg University - Department of Economics; University of Melbourne - Department of Economics

Date Written: June 9, 2009

Abstract

December 1, 1996 a new law was implemented in Portugal to gradually reduce the standard workweek 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.

Keywords: Workweek reduction, policy reform, employment dynamics

JEL Classification: J22, J63, J81

Suggested Citation

Raposo, Pedro S. and van Ours, Jan C., How a Reduction of Standard Working Hours Affects Employment Dynamics (June 9, 2009). CentER Discussion Paper Series No. 2009-50. Available at SSRN: https://ssrn.com/abstract=1424328 or http://dx.doi.org/10.2139/ssrn.1424328

Pedro S. Raposo (Contact Author)

Tilburg University - Center for Economic Research (CentER) ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Jan C. Van Ours

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2880 (Phone)
+31 13 466 3042 (Fax)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

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