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The macroeconomic effects of the 35-h workweek regulation in France

Zaichao Du (), Yin Hua and Lin Zhang

The B.E. Journal of Macroeconomics, 2013, vol. 13, issue 1, 21

Abstract: The 35-h workweek regulation, fully adopted in France in 2000, has been one of the most significant regulatory shocks imposed on any large economy. Yet the effects of the regulation remain controversial. In this paper, we evaluate the effects of the 35-h workweek regulation on unemployment and real GDP in France using a counterfactual analysis. We exploit the dependence of unemployment and GDP growth among different economic entities and construct the counterfactuals using data from countries other than France. We find that the 35-h workweek regulation reduced France’s annual unemployment rate by 1.58% and raised the real GDP by 1.36% from 2000 to 2007.

Date: 2013
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DOI: 10.1515/bejm-2012-0073

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