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The macroeconomic effects of the 35-h workweek regulation in France

Author

Listed:
  • Du Zaichao

    (Southwestern University of Finance and Economics, Chengdu, China)

  • Yin Hua

    (Southwestern University of Finance and Economics, Chengdu, China)

  • Zhang Lin

    (Southwestern University of Finance and Economics, Chengdu, China)

Abstract

The 35-h workweek regulation, fully adopted in France in 2000, has been one of the most significant regulatory shocks imposed on any large economy. Yet the effects of the regulation remain controversial. In this paper, we evaluate the effects of the 35-h workweek regulation on unemployment and real GDP in France using a counterfactual analysis. We exploit the dependence of unemployment and GDP growth among different economic entities and construct the counterfactuals using data from countries other than France. We find that the 35-h workweek regulation reduced France’s annual unemployment rate by 1.58% and raised the real GDP by 1.36% from 2000 to 2007.

Suggested Citation

  • Du Zaichao & Yin Hua & Zhang Lin, 2013. "The macroeconomic effects of the 35-h workweek regulation in France," The B.E. Journal of Macroeconomics, De Gruyter, vol. 13(1), pages 881-901, June.
    • Handle: RePEc:bpj:bejmac:v:13:y:2013:i:1:p:21:n:2
    DOI: 10.1515/bejm-2012-0073
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    References listed on IDEAS

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    Cited by:

    1. Carvalho, Carlos & Masini, Ricardo & Medeiros, Marcelo C., 2018. "ArCo: An artificial counterfactual approach for high-dimensional panel time-series data," Journal of Econometrics, Elsevier, vol. 207(2), pages 352-380.
    2. John Komlos, 2015. "How Natural Is the Natural Rate of Unemployment?," Challenge, Taylor & Francis Journals, vol. 58(2), pages 160-167, March.
    3. Simone d’alessandro & Tiziano Distefano & Guilherme Spinato Morlin & Davide Villani, 2023. "Policy Responses to Labour-Saving Technologies: Basic Income, Job Guarantee, and Working Time Reduction," JRC Working Papers on Social Classes in the Digital Age 2023-09, Joint Research Centre.
    4. Strunz, Sebastian & Schindler, Harry, 2017. "Identifying barriers towards a post-growth economy: A political economy view," UFZ Discussion Papers 6/2017, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    5. Strunz, Sebastian & Schindler, Harry, 2018. "Identifying Barriers Toward a Post-growth Economy – A Political Economy View," Ecological Economics, Elsevier, vol. 153(C), pages 68-77.
    6. John Komlos, 2016. "Unemployment in a Just Economy," CESifo Working Paper Series 5974, CESifo.
    7. Du, Zaichao & Yin, Hua & Zhang, Lin, 2022. "Foreign buyer taxes and house prices in Canada: A tale of two cities," Journal of Housing Economics, Elsevier, vol. 55(C).

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