Sánchez, Rafael (2010) Do reductions of standard hours affect employment transitions? : evidence from Chile. Working Paper. University of Warwick. Dept. of Economics, Coventry.

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Abstract

This study exploits the reduction of weekly working hours from 48 to 45 occurred in Chile in January 2005. We use this pure and exogenous policy change to identify the employment effects of such a policy. Our main contribution is that we overcome the problems of previous studies such as : selection between hours and employment, lack of identification strategy due to the joint implementation of policies and lack of crucial variables (like hourly wages and usual hours). Our results suggest no significant effects of a reduction of standard hours on employment transitions and a significant effect on hourly wages (i.e. wage compensation). These results are robust to several specifications.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Hours of labor -- Chile, Wages -- Chile, Employment (Economic theory)
Series Name:	Warwick economics research paper series (TWERPS)
Publisher:	University of Warwick. Dept. of Economics
Place of Publication:	Coventry
Date:	2010
Volume:	Vol.2010
Number:	No.925
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
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URI:	http://wrap.warwick.ac.uk/id/eprint/3536

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