The Shorter Workweek and Worker Wellbeing: Evidence from Portugal and France

Using data from the European Community Household Panel, this paper evaluates the impact of the exogenous reductions in weekly working hours induced by reforms implemented in Portugal and France on worker wellbeing. Difference-in-differences estimation results suggest that reduced working hours generated significant and robust increases in job and leisure satisfaction of the workers affected in both countries (from 0.07 to 0.15 standard deviation increases), with the rise in the former mainly being explained by greater satisfaction with working hours and working conditions. Further results suggest that staff representative bodies are important for ensuring that working-time reductions lead to welfare gains.