Working Time Reduction and Life, Job Satisfaction

Abstract

We investigate wage workers’ life satisfaction and job satisfaction changes after the introduction of reduced work hours using the Korean Labor and Income Panel Study. Considering the policies phased over several years, we adopted heterogeneity-robust DID, which can derive valid estimates even in a multiple-period setting. As a result, life and job satisfaction increased after the 2003 reform, especially with the 5-day work week. Changes in life satisfaction occurred later than changes in job satisfaction, where positive changes immediately showed. On the other hand, the impact of a 52-hour workweek on life and job satisfaction at a statistically significant level has yet to be captured.