Are the French Happy with the 35-Hour Workweek?
IMF Working Papers, November 1, 2006
Source details
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- Are the French Happy with the 35-Hour Workweek?
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Bibliographic details
- Authors: Marcello M. Estevão, Filipa G Sa
- Published: November 1, 2006
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451865110.001
Research question and context
- Legally mandated reductions in the workweek can be either a constraint on individuals' choice or a tool to coordinate individuals' preferences for lower work hours.
- The study confronts these two hypotheses by examining the workweek reduction in France from 39 to 35 hours, which was first applied to large firms in 2000.
Data and methodology
- Quasi-experimental design exploiting the timing difference by firm size (large firms first).
- Data source: French labor force survey.
Key findings
- The law constrained the choice of a significant number of individuals:
- Dual-job holdings increased.
- Some workers in large firms went to small firms where hours were not constrained.
- Others were replaced by cheaper, unemployed individuals as relative hourly wages increased in large firms.
- Employment of persons directly affected by the law declined.
- The net effect on aggregate employment was not significant.
Subjects and keywords (as reported)
- Subject: Employment, Income, Labor, National accounts, Unemployment, Wages
- Keywords: business cycle, coordination, Employment, Europe, firm employee, firms vis-à-vis, Income, job-sharing, labor force, large firm, minimum wage, small firm, Unemployment, Wages, welfare, work hour, Workweek, workweek reduction, WP