Constraints on Hours within the Firm

Claudio Labanca*, Dario Pozzoli

*Corresponding author af dette arbejde

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review


Firms often impose contraints 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 between firms' technologies and coordination of hours among coworkers.
TidsskriftJournal of Labor Economics
Udgave nummer2
Sider (fra-til)473-503
Antal sider31
StatusUdgivet - apr. 2022

Bibliografisk note

Published online: 21 February 2022.


  • Tax rates
  • Labor supply
  • Tax reform
  • Working hours
  • Business enterprises