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IZA Discussion Paper No. 2459
November 2006
Are the French Happy with the 35-Hour Workweek?

revised version published as 'The 35-hour workweek in France: Straightjacket or welfare improvement? ' in: Economic Policy, 2008, 23 (55), 417-463

Legally mandated reductions in the workweek can be either a constraint on individuals’ choice or a tool to coordinate individuals’ preferences for lower work hours. We confront these two hypotheses by studying the consequences of the workweek reduction in France from 39 to 35 hours, which was first applied to large firms in 2000. Using the timing difference by firm size to set up a quasi-experiment and data from the French labor force survey, we show that the law constrained the choice of a significant number of individuals: dual-job holdings increased, some workers in large firms went to small firms where hours were not constrained, and others were replaced by cheaper, unemployed individuals as relative hourly wages increased in large firms. Employment of persons directly affected by the law declined, although the net effect on aggregate employment was not significant.

Communications
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
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Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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