Workweek reduction and women's job turnover: Evidence from labor legislation in South Korea

Abstract

AbstractThis study examines whether a workweek reduction impacts job turnover behavior of workers, with a particular focus on female worker's turnover. To assess the causal relationship, I exploit the introduction of South Korea's workweek reduction policy as a natural experiment. Using individual longitudinal data, I estimate a job turnover model that distinguishes job‐to‐job transition from job‐to‐nonemployment transition. The estimates reveal that, for women, mandating a 40‐h workweek significantly decreases the probability of making a job‐to‐nonemployment transition and thus raises the probability of staying in the job. The impacts of a work‐hour reduction are salient among married women.