Paper accepted at the Journal of Labor Economics


“Constraints on Hours within the Firm” - article written by ECON professor mso Dario Pozzoli with Claudio Labanca (Monash University) accepted at the Journal of Labor Economics


Firms often impose constraints on working hours. While many believe that these constraints shape labor supply decisions, little evidence exists to support such views. We explore this relationship using linked employer-employee data on hours worked and the variation in tax rates derived from the 2010 Danish tax reform. We show that hours worked are unresponsive to individual tax changes in firms with strict constraints, whereas they respond to these changes, directly and through spillovers, in firms with looser constraints. Starting from these findings, we discuss the determinants of hours constraints distinguishing between firms’ technologies and coordination of hours among coworkers.


Read the article here. 


The page was last edited by: Department of Economics // 03/02/2021