The 35-hour workweek in France: Straightjacket or welfare improvement?

TY - JOUR

T1 - The 35-hour workweek in France: Straightjacket or welfare improvement?

AU - Estevao, Marcello

AU - Goncalves e Sa, Filipa

PY - 2008/7

Y1 - 2008/7

N2 - Workweek reduction laws may be beneficial if market interactions do not fully take into account the preferences reflected in declining secular trends in working hours. The most recent law in France shortened the workweek from 39 to 35 hours in 2000 for large firms, and in 2002 for small firms. Analysing differences between large and small firm employees before and after the law, we find that aggregate employment was unaffected but labour turnover increased, as firms shed workers who became more expensive. Survey responses indicate that the welfare impact of the law was different across groups of workers: women but not men may have benefited from coordination to a shorter workweek, and there is also evidence of negative welfare effects for managers, possibly due to the law's administrative burden.

AB - Workweek reduction laws may be beneficial if market interactions do not fully take into account the preferences reflected in declining secular trends in working hours. The most recent law in France shortened the workweek from 39 to 35 hours in 2000 for large firms, and in 2002 for small firms. Analysing differences between large and small firm employees before and after the law, we find that aggregate employment was unaffected but labour turnover increased, as firms shed workers who became more expensive. Survey responses indicate that the welfare impact of the law was different across groups of workers: women but not men may have benefited from coordination to a shorter workweek, and there is also evidence of negative welfare effects for managers, possibly due to the law's administrative burden.

KW - WORKING-TIME

U2 - 10.1002/9781444306835.ch1

DO - 10.1002/9781444306835.ch1

M3 - Article

SN - 0266-4658

VL - 55

SP - 418

EP - 463

JO - ECONOMIC POLICY

JF - ECONOMIC POLICY

T2 - Panel Meetig of Economic Policy 2007

Y2 - 1 October 2007

ER -