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Effects of a national work hours restriction in a high hours country

Lee Jieun ()
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Lee Jieun: University of Colorado Boulder, Boulder, CO 80309, USA

IZA Journal of Labor Policy, 2022, vol. 12, issue 1, 18

Abstract: This paper examines the effect of a new maximum work hour restriction introduced in South Korea in 2018 that limited maximum working hours from 68 h/week to 52 h/week. I use difference-in-differences analysis with continuous treatment measuring the prevalence of those working longer than 52 h/week prior to the policy change across industry-occupation-education groups. I find that the policy reduces work hours while increasing monthly earnings and hourly wages for male full-time workers. However, I find that the policy does not significantly affect total work hours, total employment, and total worker pay at the industry-occupation-education group level.

Keywords: Work hour restriction; Labor regulation; Difference-in-differences with continuous treatment; South Korea (search for similar items in EconPapers)
JEL-codes: J22 J81 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.2478/izajolp-2022-0006

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