The Last Working Time Reduction - Lessons from the statutory working time reductions in Sweden and Norway 1969-1980

Sammanfattning: Statutory standard weekly working time reductions (SWRs) have been associated with a number of positive effects. Some of which include work-sharing, increased gender equality, and fewer workplace injuries. This paper exploits the timing of the introduction of the SWRs to the 40-hour workweek in Sweden (1973) and Norway (1977) to estimate effects on hours worked, employment, female employment, wage growth, and workplace injuries. Panel fixed effects estimates indicate that a SWR of 2.5 hours is associated with a fall in actual hours worked per week by 1 hour. Neither difference in differences nor panel fixed effects estimates yield any employment effect. The introduction of the 40-hour SWRs is associated with a 0.05 percentage points reduction of wage growth. No relationship between SWRs and female employment or the rate of workplace injuries is found.