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
Date Written: June 9, 2009
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: Suggested Citation