Evaluating the impact of a working time regulation on capital operating time: The french 35-hour work week experience

Abstract

In this article, we evaluate the impact of diminishing weekly working hours on capital operating time using the French 35-hour working week experience. We merge the French survey on Capital Operating Time (COT, Banque de France, Central Bank of France; 1989-2004) and administrative Working Time Reduction agreements files (WTR, DARES, French Ministry of Labour; May 2003). We construct shift-work-based capital operating time indicators. Using differences-in-differences econometric models, we show that the implementation of the 35-hour work week did not induce any reduction in COT. Hence, firms increased shift-work to compensate for the decrease in working hours.