How Has the Two-Day Weekend Policy Affected Labour Supply and Household Work in China?
Tony Fang (),
Carl Lin () and
Xueli Tang ()
Additional contact information
Tony Fang: Memorial University of Newfoundland
No 11698, IZA Discussion Papers from Institute of Labor Economics (IZA)
This paper examines the effects of working time reduction policy on labour supply (hours of work and whether an individual takes a second job) and household production, by exploiting the Chinese Two-Day Weekend Policy, which effectively reduced weekly working days from six to five in May 1995, as a natural experiment. We construct a theoretical model that predicts a decline in labour supply in both private and public sectors as work hours were reduced. In theory, the time spent on household production may increase or decrease or the time spent on the second job may increase or decrease depending on how much agents care about household production or the income from a second job. Using the China Health and Nutrition Survey, we adopt a difference-in-differences strategy to estimate the policy effects on work hours of wage earners in both public and private sectors. Relative to the control group deemed unaffected by the policy change, our estimates show that the Two-Day Weekend Policy significantly reduced the working hours of wage earners by 4 percent and the public sector by 5 percent while increasing the probability of having a second job by 3 percent and reducing the time spent on household work by 98-107 minutes per week. The results are robust to different specifications and a propensity score matching technique.
Keywords: labour supply; time allocation; work hours; household production; second job; China (search for similar items in EconPapers)
JEL-codes: J22 J28 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cna and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp11698
Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Access Statistics for this paper
More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().