Research Note: Estimating the Work Time Effect on Hotel Room Demand

Chiang-Ming Chen
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Chiang-Ming Chen: Department of Economics, National Chi Nan University, 1 University Road, Puli, Nantou 54561, Taiwan

Tourism Economics, 2013, vol. 19, issue 6, 1461-1466

Abstract: The introduction of the five-day working week in Taiwan constitutes a natural experiment with treatment and control groups that lends itself to the difference-in-difference approach used in this study. Based on this empirical design, a treatment group consisting of domestic guests and a control group consisting of foreign guests are formed. The study hypothesizes that, after the introduction of this work day system, room demand in the treatment group will exceed the corresponding increase in the control group. This hypothesis is based on the findings of Taiwanese international tourist hotels, which suggest that the implementation of the five-day working week system in 2001 accounted for a significant increase in hotel demand.

Keywords: natural experiment; difference-in-difference; work time; hotel demand; Taiwan (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:19:y:2013:i:6:p:1461-1466

DOI: 10.5367/te.2013.0243

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