Abstract
This study investigates a mechanism of employment effects of 40-hour workweek empirically, utilizing the four waves of Workplace Panel Survey. I apply panel data fixed effect models with individual and time effects, improving upon the analytical frameworks of Brunell(1989), Hunt(1999), and Kawaguchi et al(2008).
The results of this study are as follows. First, 40-hour workweek does not affect overtime significantly, but reduces actual weekly working hours by about 4 hours. Second, 40-hour workweek has a weakly positive effect on labor productivity. Third, actual working hours and labor productivity have significantly negative effects on employment. Fourth, 40-hour workweek has a significantly positive effect on employment. The results indicate that labor productivity gain is likely to act as a mediator between the shorter standard workweek and employment, but that overtime is not. Finally I summarize the results of this study and discuss their implications.
The results of this study are as follows. First, 40-hour workweek does not affect overtime significantly, but reduces actual weekly working hours by about 4 hours. Second, 40-hour workweek has a weakly positive effect on labor productivity. Third, actual working hours and labor productivity have significantly negative effects on employment. Fourth, 40-hour workweek has a significantly positive effect on employment. The results indicate that labor productivity gain is likely to act as a mediator between the shorter standard workweek and employment, but that overtime is not. Finally I summarize the results of this study and discuss their implications.
| Translated title of the contribution | The Employment Effects of 40-Hour Standard Workweek |
|---|---|
| Original language | Korean |
| Pages (from-to) | 109-129 |
| Number of pages | 21 |
| Journal | 산업관계연구 |
| Volume | 24 |
| Issue number | 2 |
| State | Published - Jun 2014 |