PUBLICATIONS & REPORTS
PUBLICATIONS & REPORTS
From Kitakyushu to the world: AGI, a research institute that studies Asia's economy and society
The Short-run Production Effect of the Reduction of Working Hours
| Author | hung Gi Baek, Wankeun Oh |
|---|---|
| Date of Publication | 2002. 12 |
| No. | 2002-38 |
| Download | 549KB |
Contents Introduction
Korea’s unemployment rate has returned to the pre-financial crisis level of 1997. However, Korean workers still have the longest working hours among OECD countries. Labor unions and the government are pushing for a reduction in legal working hours to improve the quality of life. This paper investigates the short-run production effects of the reduction in legal working hours on the Korean economy by industry using a twostage approach. The short-run production effect on the Korean economy was negative in all industries and manufacturing was most severely affected by the reduction in legal working hours.