For Official Use ECO/CPE/WP1 (2007) 11/ANN1: 21-Sep-2007 English - Or. English Economic Policy Committee

For Official Use ECO/CPE/WP1(2007)11/ANN1
Organisation de Coopération et de Développement Economiques

Organisation for Economic Co-operation and Development 21-Sep-2007
___________________________________________________________________________________________
English - Or. English
ECONOMICS DEPARTMENT
ECONOMIC POLICY COMMITTEE
For Official Use
ECO/CPE/WP1(2007)11/ANN1
Working Party No. 1 on Macroeconomic and Structural Policy Analysis
FACTORS EXPLAINING DIFFERENCES IN HOURS WORKED ACROSS OECD COUNTRIES
ANNEX 1: FIGURES AND TABLES
Contact: Jean-Marc Burniaux, Tel: (33 1) 45 24 97 32; Fax: (33 1) 44 30 61 66; Email: jeanmarc.burniaux@
oecd.org
English - Or. English
JT03232459
Document complet disponible sur OLIS dans son format d'origine

Complete document available on OLIS in its original format
Figures
1. Average annual hours worked per employed person, 2005

2. Average annual growth rates of average annual hours worked per employed person, 1995-2005
3. The evolution of annual hours worked by main OECD areas, 1960-2005
4. Average annual hours worked per full-time employee, 2005
5. Intensity and incidence of part-time work across OECD countries, 2005
6. Average usual weekly hours worked per employed person, 2005
7. Overall distribution of weekly hours worked in Norway and Poland, 2005
8. Usual weekly hours worked by population sub-groups, OECD average in 2005
9. Usual weekly hours worked by industry and occupation, OECD average in 2005
10. Differences in average annual hours worked across OECD countries: contributions of the length
of the work week and the number of weeks actually worked per year
11. Average and marginal direct tax wedges across OECD countries, 2005
12. Marginal tax wedges for women by marital status and existence of children, OECD average,
2005
13. Indirect taxes as a percentage of GDP across OECD countries, 2005
14. Annual hours worked and tax variables, 2005
15. Weekly hours worked by women and marginal tax wedges, 2005
16. Impact on weekly hours worked of reducing marginal tax wedges by 10 percentage points in
2004, change by country in per cent
17. Lowering of marginal tax rates to the United States level: Impact on weekly hours worked and
employment rates of women in Europe
18. Indicator of working-time regulations and annual hours worked, 2005
19. Hours impact of country fixed effects, men and women
Tables
1. Usual weekly hours worked: the impact of gender, full- and part-time work
2. Values of labour supply elasticities for men and women
from the micro-econometric studies
3. Survey of cross-country studies on the impact of taxes on hours worked
4. Econometric results of the impact of taxation on annual hours worked at the aggregate level
5. Econometric results of the impact of taxation on weekly hours worked at a disaggregated level
6. Impact of marginal tax wedges on the intensive and extensive margins of the labour market
7. Normal and overtime hours limits across OECD countries, 2005
8. Working-time flexibility indicator across OECD countries, 2005
9. Regulations providing incentives for part-time work, around 20051
10. Public holidays, paid leave, sickness and maternity leave across OECD countries, 2005
11. Overall indicator of working-time regulations relative to annual hours worked across, 2005
12. Econometric results of the impact of working-time regulations on weekly hours worked at a
disaggregated level
13. Econometric results of the impact of other labour and product market regulations on weekly
hours worked at a disaggregated level
2
Figure 1. Average annual hours worked per employed person

2005
Average annual hours actually worked per worker
2 300
2 100
1 900
1 700
1 500
1 300
Sw ay
C 5)
itz 19)
ze M ry
G nce
ro ni em ny
U ing g
Ire d
Au d
Au taly
R ico
T ic
e
on dom
N s
D den
Be a
ria
Ze n
St y
Po s
Ic d
G d
a
Ja l
m
R CD
Fr k
Po lia
H lic
ga
nd
te ke
e
n
an
ar
K ur
ad
on lan
pa
an
ec
ai
re
l
ga
1
iu
ub
ub
w
ra
a
at
la
la
la
st
ch ex
rtu
ew Sp
U
bo
Sw EU
m
Ko
ak OE
I
ni ur
Lu rm
a
rla
re
al
lg
e
an
el
or
er
U Fin
un
st
ep
ep
(E
en
he
d
et
U x
d
ni
ni
N
pe te
ov
U
C
an
an
Sl
pe
ro
Eu
Eu
Note: Averages for OECD, European Union (EU15) and European Union (EU19) are weighted by employment levels.
Source : European Union Labour Force Survey (EULFS); US Current Population Survey (CPS); Statistics Canada, Labour Force Survey;
Australia, Labour Force Survey; OECD, Employment Outlook , 2007 and Secretariat calculations.
3
Figure 2. Average annual growth rates of average annual hours worked per employed person
1995-20051
Average annual per cent change
0.6
0.4
0.2
0.0
-0.2
-0.4
-0.6
-0.8
-1.0
-1.2
-1.4
itz 9)
g
ce
ry
en
ea
lic
es
k
Po d
nd
Ze a
ria
d
al
ly
n
lia
ay
D
m
lic
an
ar
nd
ur
pa
n
e w nad
ec
ic
an
an
an
ai
EC
Ita
Lu rtug
Sw U1
ga
do
iu
ub
ec pub
ra
an
w
at
ed
la
la
st
r
ex
Sp
m
bo
Ko
rla
m
re
Ja
lg
al
nl
el
or
St
er
Ire
un
Au
st
ov ing
ep
(E
O
Fr
en
Sw
M
er
Be
Fi
Ic
G
m
Cz Re
N
he
Au
C
H
d
R
K
G
D
xe
on
te
et
h
ak
d
ni
ni
N
te
N
U
U
ni
an
Sl
U
pe
ro
Eu
Note: Averages for OECD and European Union (EU19) are weighted by employment levels.
1. 1996-2005 for Hungary, Switzerland and United States, 1997-2005 for Czech Republic, 1998-2005 for Slovak Republic.
Australia, Labour Force Survey; OECD, Employment Outlook , 2007 and Secretariat calculations.
4
Figure 3. The evolution of annual hours worked by main OECD areas, 1960-2005
2300
2200 Japan
Western Europe
Eastern Europe
2100
2000 OECD
1900
1800
United States
1700
1600
Nordic Europe
1500
60
62
64
66
68
70
72
74
76
78
80
82
84
86
88
90
92
94
96
98
00
02
04
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
20
20
Source: OECD, Productivity database; Groningen Growth and Development Centre and the Conference Board;
Total Economy Database, May 2006.
5
Figure 4. Average annual hours worked per full-time employee

2005
Average annual hours actually worked per worker
2 200
2 100
2 000
1 900
1 800
1 700
1 600
1 500
ay
he 5 )
Po 9)
nd
d
G c
ry
Sw e
Be rg
d
Fi y
d
s
on any
Ic s
Ire l
m
en
ep n
Re a
te alia
ic
m
D
m k
ga
l
e
nd
r
ec
an
c
an
i
ad
Sw olan
bl
Ita
EC
ak Spa
ga
r
do
a
u
ni lgiu
ub
w
an
at
la
ed
la
st
rtu
U
U
bo
Lu nm
pu
r
U er m
rla
re
nl
el
an
or
er
St
ze Au
un
U ust
ng
(E
(E
Fr
P
N
itz
C
e
H
Ki
d
R
A
G
xe
D
on
et
ch
ni
ni
N
te
ov
U
ni
C
an
en
Sl
U
pe
pa
ro
ro
Eu
Eu
Australia, Labour Force Survey and Secretariat calculations.
6
Figure 5. Intensity and incidence of part-time work across OECD countries, 2005
Panel A. Intensity of part-time work
Average annual hours worked by part-time employee
1200
1150
1100
1050
1000
950
900
850
800
750
700
)
)
(E s
lic
th om
lia
nd
O l
rg
G d
Ic d
en
Au ny
Fi y
y
m
a
Po i a
Be d
Hu d
k
on way
lic
es
Sl xem D
ga
15
19
nd
ar
l
ar
ad
ai
an
n
an
n
ec
Sw anc
Ita
EC
r
ch lgiu
ak bou
ni pub
ub
ra
a
at
la
la
ed
la
st
rt u
d
Sp
ng
U
U
ite nm
Un erla
m
re
an
nl
el
or
er
Ire
st
St
Au
Po
ng
ep
(E
Fr
Sw
er
e
N
itz
C
U n De
Ki
d
R
R
G
te
io
p e Ne
d
Lu
ni
ze
ov
U
U
C
an
an
pe
ro
ro
Eu
Eu
Panel B. Incidence of part-time work
Part-time employees, per cent of total employees
50
45
40
35
30
25
20
15
10
0
he nd
ze G r y
Po lic
Ire ly
U I ce )
Au )
Po al
nd
Fi n
d
nd
(E d
en
itz lia
H lic
es
Sw m
Ki ny
N m
Au ay
s
R ce
m e
U Ca g
d da
(E D
en ia
Be k
19
15
nd
ai
ar
an
on an
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ur
Ita
C
g
r
ga
iu
do
ub
ub
Sw stra
at
a
ch ee
la
ed
st
la
rtu
Sp
m
E
bo
lg
rla
te rm
Lu Fra
N erl
n
l
nl
or
St
un
ng
ep
ep
O
r
e
R
G
D
n
te
et
io
k
d
i
ni
a
n
ov
ni
C
Sl
an
an
U
pe
pe
ro
ro
Eu
Eu
7
Figure 6. Average usual weekly hours worked per employed person

2005
Average weekly hours worked per employed person

46
44
42
40
38
36
34
32
30
Au a y
)
d
on and
G c
e
rg
ds
Be y
Po d
es
d
Au l
em m
lia
en a
en
ria
Re d
m
D
er k
ga
15
19
r
l
i
an
Sw lan
ar
i
ad
an
nc
ec
an
ai
bl
Ita
bl
EC
ak nga
iu
pe Lux do
ni bou
w
ra
at
n
ed
la
st
Sp
rtu
U
U
m
pu
U epu
m
ra
rla
lg
re
U zerl
nl
el
an
or
Ire
o
st
St
ng
(E
(E
O
Sw
Fi
P
u
Ic
F
N
he
H
Ki
d
R
it
G
D
on
te
et
ch
d
ni
ni
N
te
ze
ov
U
ni
C
an
an
Sl
U
pe
ro
ro
Eu
Eu
Note: Averages for OECD, European Union (EU15) and European Union (EU19) are weighted by using employment levels.
8
Figure 7. Overall distribution of weekly hours worked in Norway and Poland, 2005
Employment, per cent

40
Norway
35
30
25
Poland
20
15
10
0
10 15 20 25 30 35 40 45 50 55 60 65 70
Usual weekly hours worked
Source : European Union Labour Force Survey (EULFS).
9
Figure 8. Usual weekly hours worked by population sub-groups, OECD average in 2005
1
Panel A. Usual weekly hours worked by marital status and existence of children

60
Men Women
50
40
30
20
10
0
Married Married Single Single
Children No child Children No child
Marital status and existence of children
Panel B. Usual weekly hours worked by age-group

60
Men Women
50
40
30
20
10
0
15-24 25-54 55+
Age-group
Panel C. Usual weekly hours worked by education level

60
Men Women
50
40
30
20
10
0
Low Medium High
Education level
Note: OECD average covers the EU19, the United States and Canada and is weighted by employment levels.
1. Denmark, Finland, Iceland, Ireland, Norway, Sweden and Switzerland are not included in OECD average.
Source : European Union Labour Force Survey (EULFS); US Current Population Survey (CPS);
Statistics Canada, Labour Force Survey.
10
Figure 9. Usual weekly hours worked by industry and occupation, OECD average in 2005
1
Panel A. Usual weekly hours worked by sector of activity

50
45 Men Women
40
35
30
25
20
15
10
5
0
Manufacturing
Service
Agriculture
Other
Administration
Sector of activity
2
Panel B. Usual weekly hours worked by occupation

60
Men Women
50
40
30
20
10
0
Plant and machine operators
and assemblers
Legislators, senior
Craft and related
trades workers
officials and managers

Professionals
and fishery workers

Skilled agricultural
Clerks
Elementary
occupations
Armed forces
Technicians and
associate professionals
Service workers and shop
and market sales workers
Occupation
Note: Average for OECD is weighted by employment levels.

1. Average including the EU19, Canada and the United States
2. Average for EU19 only
Source: European Union Labour Force Survey (EULFS);Statistics Canada, Labour Force Survey;
US Current Population Survey (CPS).
11
Figure 10. Differences in average annual hours worked across OECD countries:
contributions of the length of the work week and the number of weeks actually worked per year
Panel A. Differences in annual hours worked Panel B. Change in annual hours worked
1 2, 3
relative to United States in 2005 1991-2005
Average annual percentage change over the period considered

Due to total weekly hours deviations
Due to annual weeks worked deviations

Total weekly hours
4
Interaction
Annual weeks worked
Greece Sweden 1995-2005

Iceland Iceland 1995-2005
Poland Denmark 1991-2005
Czech Republic Austria 1995-2005
Hungary Poland 2001-2005
Slovak Republic Hungary 1996-2005
Spain Norway 1995-2005
Portugal
Greece 1991-2005
Australia
Belgium 1991-2005
Italy
Spain 1991-2005
Austria
Italy 1991-2005
Ireland
United States 1996-2005
Switzerland
Finland 1995-2005
European Union (EU19)
Canada 1991-2005
AVERAGE
OECD 1996-2005
Finland
Australia 2001-2005
Belgium
United Kingdom 1991-2005
Canada
Germany 1991-2005
European Union (EU15)
Switzerland 1996-2005
United Kingdom
Netherlands 1991-2005
Luxembourg
Czech Republic 1997-2005
Germany
Slovak Republic 1998-2005
France
Portugal 1991-2005
Denmark
France 1991-2005
Sweden
Luxembourg 1991-2005
Norway
Ireland 1991-2005
Netherlands
-600 -500 -400 -300 -200 -100 0 100 200 -1.0 -0.8 -0.6 -0.4 -0.2 0.0 0.2 0.4 0.6
Total annual hours worked Per cent
1. Countries are ranked according to increasing differences relative to United States.
2. Countries are ranked according to increasing average yearly percentage changes.
3. OECD average exclude Australia, the Czech Republic, Poland and the Slovak Republic.
4. Relates to a residuals term corresponding to the interaction of both differences in weekly hours and weeks worked annually together.
Source: European Union Labour Force Survey (EULFS); Statistics Canada, Labour Force Survey; US Current Population Survey (CPS); Australia, Labour Force Survey.
12
Figure 11. Average and marginal direct tax wedges across OECD countries, 2005
Marginal tax wedge1 Median

0.70
Bel
0.65 T-statistic: 8.25
0.60
Hun Swe
0.55 Aut Deu
Fin Ita
Dnk
Fra
0.50
Median Nld Cze
Nor
Gbr Aus Pol
0.45 Tur
Grc
Lux Esp
0.40 Irl Can Svk
Usa Prt
Che
0.35
Nzl
0.30 Jpn
0.25
Mex
Kor
0.20
0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50
Average tax wedge1
1. Average of marginal and average tax wedges computed from disaggregated taxation model (see Annex 4).
Source: OECD, Taxing Wages database.
13
Figure 12. Marginal tax wedges for women by marital status and existence of children
OECD average,1 2005
Average marginal tax rates

Average marginal taxdeviation
Standard rates of average marginal tax rates across countries
Single
Single No child
No child
Single Single
with children
with children
Married
Married
No child
No child
Married
Married
with children
with children
0.20 0.24 0.28 0.32 0.36 0.40 0.44 0.48 0.52 0.56 0.60
0.20 0.24 0.28 0.32 0.36 0.40 0.44 0.48 0.52 0.56 0.60
Marginal taxwedge
Marginal tax wedge
1. Excluding Iceland.
Source: OECD, Taxing Wages database.
14
Sw
itz
0
5
10
15
20
25
Un er
ite lan
d d
St
at
Per cent
es
Ja
pa
Cz G n
ec r ee
h
R ce
ep
u
G blic
er
m
an
y
Sp
ai
C n
an
ad
N a
or
w
Source: OECD, Economic Outlook, No.81.

Au ay
st
ra
lia
Ne K o r
Sl th ea
ov erl
ak an
U R ds
ni ep
te ub
d lic
Ki
ng
do
Be m
N
15
ew lgiu
Ze m
Lu ala
xe n
m d
bo
ur
g
Ire
la
nd
Po
la
n
Fi d
nl
an
d
Ita
l
Au y
st
ria
Po
rtu
ga
H
un l
ga
ry
Fr
an
Figure 13. Indirect taxes as a percentage of GDP across OECD countries, 2005
ce
Sw
ed
D e
en n
m
ar
Ic k
el
an
d
Figure 14. Annual hours worked and tax variables, 2005
Panel A. Average tax wedge at the household level
Annual hours worked per person in employment
2100
Cze Grc
2000 Hun Pol
1900 Tur
Mex Can
Jpn
1800 Isl Usa Aus Ita
Nzl
Svk
1700 Prt Fin
Gbr
Irl Che Aut Esp
1600 Swe
Lux Dnk Bel
Fra
1500
Deu
1400
Nor Nld
1300
1200
0.0 0.1 0.2 0.3 0.4 0.5
Average tax wedge for one-earner family earning APW
Panel B. Aggregate tax wedge at the country level

2100
Grc Cze
2000 Pol Hun
1900
Jpn Aus
Usa Can
1800 Ita Isl
Svk
1700 Prt Fin
Irl Gbr Aut
Esp Swe
1600
Lux Bel Fra
1500 Dnk
Deu
1400
Nld Nor
1300 T-statistic: -2.56
1200
0.3 0.4 0.5 0.6 0.7
(Taxes and social contributions + indirect taxes) / GDP
Panel C. Average marginal tax wedge on second earner
2100
Grc Cze
2000 Pol Hun
1900 Mex Tur
Can
Jpn Aus
1800 Nzl Usa Ita
Svk
1700 Prt Gbr Fin
Irl Che Esp Aut
1600 Swe
Lux Dnk Fra Bel
1500
Deu
1400
Nor Nld
1300 T-statistic: -2.03
1200
0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8
Average marginal tax wedge on second earner
Source : Bassanini and Duval (2006); OECD Economic Outlook No 81, OECD Taxing Wages database.
16
Figure 15. Weekly hours worked by women and marginal tax wedges, 2005
Panel A. Without children
Weekly hours worked

42
41 Slope: -15.38
40 Svk Cze T-statistic: -2.86***

Hun
39 Usa Grc
38 Pol
Prt
37 Gbr
Esp Aut
36 Lux
Can
35 Ita
34 Fra
Deu Bel
33
32
0.3 0.4 0.4 0.5 0.5 0.6 0.6 0.7 0.7 0.8
Marginal tax wedge
Panel B. With children
Weekly hours worked

42
40 Cze Slope: -24.69

Svk Hun
Grc T-statistic: -2.1**
38 Prt Pol
36 Usa
34 Esp Can
32 Fra
Ita
30 Aut Bel
Lux
28 Gbr
26
Deu
24
0.3 0.4 0.4 0.5 0.5 0.6 0.6 0.7 0.7 0.8
Marginal tax wedge
Source : European Union Labour Force Survey (EULFS); US Current Population Survey (CPS); Statistics Canada,
Labour Force Survey; OECD, Taxing Wages database.
17
Figure 16. Impact on weekly hours worked of reducing marginal tax wedges
by 10 percentage points in 2004, change by country in per cent
Panel A. Impact on weekly hours per employed person
Change in per cent
4.0
3.9
3.8
3.7
3.6
3.5
3.4
3.3
3.2
3.1
3.0
nd
et Italy
Be s
y
itz m
Sw m
l
n
Po d
nd
en
lic
es
ay
lic
e
r ia
ce
k
D
ga
an
ar
nd
ar
ai
an
ec
EC
do
iu
ub
w
at
la
an
la
la
ed
st
Sp
rt u
g
ov enm
U epu
m
rla
lg
re
nl
or
er
St
Po
Ire
Au
ng
un
ep
O
Fr
er
Fi
G
N
he
Ki
H
d
R
R
G
D
te
Sw
ak
ch
d
ni
N
te
ze
ni
C
Sl
Panel B. Impact on weekly labour supply of women
Change in per cent
12.0
11.8
11.6
11.4
11.2
11.0
10.8
10.6
10.4
10.2
Sw y
nd
ry
en
nd
k
lic
s
he al
D
d
Po m
Be e
nd
n
y
ny
ly
es
ria
m
a
nd
ar
an
ec
Sw an
ai
EC
Ita
g
ga
do
iu
ub
w
an
la
at
ed
la
la
st
Sp
rtu
m
rla
lg
re
nl
or
er
Ire
Po
ze Au
St
un
ng
ep
Fr
en
Fi
er
er
G
N
itz
H
Ki
R
d
G
G
D
te
et
ch
ni
N
te
U
ni
C
Note: Average for OECD is weighted using employment levels.

Source: Secretariat calculations.
18
Figure 17. Lowering of marginal tax rates to the level of the United States: Impact on weekly hours worked and
employment rates of women in Europe
Panel A. Impact on weekly hours worked of women
Change in per cent

30
25
20
15
10
0
ay
nd
Po d
en
he ic
es
Sw y
l
s
e
om
ce
d
lic
ly
k
Be y
ria
m
ga
ar
an
nd
n
an
an
ec
ai
Ita
ga
iu
ub
ub
rw
an
tri
la
la
ed
st
rtu
Sp
pe enm
ov ingd
re
rla
lg
ze Pol
nl
er
Ire
un
Au
un
ep
ep
o
Fr
Fi
er
G
N
itz
co
H
R
R
K
G
Sw
et
ch
ak
d
an
N
te
ni
C
Sl
U
ro
Eu
Panel B. Impact on labour supply of women
Change in per cent

40
35
30
25
20
15
10
0
ay
nd
en
h e ic
ry
Po d
om
ce
l
lic
es
Be y
e
ria
Sw d
ly
m
ga
ar
nd
an
n
an
ec
ai
an
l
Ita
ga
iu
ub
ub
rw
tri
an
la
la
ed
st
rtu
Sp
ov ingd
pe enm
re
rla
lg
ze Pol
nl
er
Ire
un
Au
un
ep
o
ep
Fr
Fi
er
G
N
itz
co
H
R
R
K
G
Sw
et
ch
ak
d
an
N
te
ni
C
Sl
U
ro
Eu
Note: Average for European countries is weighted by employment levels.

Source: European Union Labour Force Survey (EULFS); US Current Population Survey and Secretariat calculations.
19
Figure 17. Lowering of marginal tax rates to the level of the United States: Impact on weekly hours worked and
employment rates of women in Europe (continued)
Panel C. Impact on weekly women labour supply1
Weekly hours per woman of age 25-54
36
Change in level after change of the marginal tax wedges
34
Initial level in 2004
32
30
28
26
24
22
20
18
Ki ay
nd
en
co lic
Sw y
l
e
Po d
nd
ce
d
s
ic
es
ly
Be y
he m
ria
m
ga
r
nd
an
ar
Sw tate
an
ec
ai
Eu ech ubl
Ita
ga
do
iu
ub
w
tri
an
la
la
la
ed
st
rtu
Sp
m
rla
m
re
lg
nl
or
er
I re
un
Po
Au
un
ng
ep
ep
Fr
S
en
Fi
er
G
N
itz
H
d
R
R
G
te
et
ak
d
an
ni
N
ite
ov
U
pe
z
Un
C
Sl
ro
Standard deviation of initial levels: 3.2

Standard deviation of levels after change of the marginal tax wedges: 4
Panel D. Impact on weekly total labour supply1
Weekly hours per person of age 25-54
41
Change in level after change of the marginal tax wedges
39
Initial level in 2004
37
35
33
31
29
27
25
Ki a y
nd
y
l
Po d
en
s
m
ic
es
e
nd
ce
d
s
lic
rk
Sw ly
Be y
m
ria
ga
ar
Sw tate
nd
an
n
ec
ai
an
l
Ita
do
an ma
iu
ub
ub
w
t ri
an
la
la
ed
la
st
rtu
Sp
ng
m
re
ze erla
lg
nl
or
er
Ire
ov Po
un
Au
ng
ep
ep
Fr
S
pe en
Fi
er
Hu
G
N
itz
co
d
R
R
G
te
et
ch
ak
d
ni
N
ite
U
Un
C
Sl
ro
Eu
Standard deviation of initial levels: 1.9

Standard deviation of levels after change of the marginal tax wedges: 2.9
Note: Average for European countries is weighted by employment levels.
1. Countries a ranked according to increasing change in level after change of the marginal tax wedges.
Source: European Union Labour Force Survey; US Current Population Survey and Secretariat calculations.
20
Figure 18. Indicator of working-time regulations and annual hours worked, 2005
Annual hours worked (hours per year)
2 500
T-statistic: 2.32**
Kor
2 300
2 100
Grc
Pol Usa
1 900
Esp Jpn
Prt
Ita Aus
Aut Irl
1 700 Fin Che
Bel Can
Lux Gbr
Deu
Fra Dnk
Swe
1 500 Nor
Nld
1 300
1 000 1 500 2 000 2 500 3 000 3 500
Indicator of working time regulations (hours per year)
Source: Secretariat calculations
21
Figure 19. Hours impact of country fixed effects, men and women
Per cent
Panel A. Men Panel B. Women
Portugal Portugal
Greece France
Spain Germany
Austria Austria
Ireland Spain
Germany Greece
AVERAGE Italy
France AVERAGE
Finland Belgium
Italy Finland
Sweden Sweden
United Kingdom Denmark
Switzerland Norway
Denmark Netherlands
Norway United Kingdom
Belgium Switzerland
Netherlands Ireland
-10 -5 0 5 10 15 -25 -20 -15 -10 -5 0 5 10 15 20 25 30
Change in per cent Change in per cent
Notes: Data refer to 2002, average for OECD is weighted by employment levels.
Source: Secretariat calculations (see text).
22
Table 1. Usual weekly hours worked: the impact of gender, full- and part-time work
Panel A. Percentage deviation relative to the United States
Group-specific changes
Compositional Interaction
Total Males Females
effect1 term2
Full-time Part-time Full-time Part-time
Netherlands -21.0 -3.1 -0.5 -2.0 -0.5 -15.0 0.1
Norway -13.0 -4.5 -0.7 -2.5 -0.2 -5.6 0.5
Switzerland -9.5 -0.7 -0.1 0.2 -0.4 -8.0 -0.6
Denmark -8.4 -2.3 -1.2 -2.7 -0.3 -2.0 0.1
Germany -8.2 -1.8 -1.1 -1.0 -0.9 -3.2 -0.2
France -6.5 -4.8 0.1 -3.1 0.7 0.7 -0.1
Sweden -6.1 -3.2 -0.2 -1.4 1.4 -3.9 1.2
Ireland -5.5 -2.0 -0.7 -4.6 -1.0 2.4 0.4
United Kingdom -4.9 1.2 -0.7 -0.7 -0.6 -4.1 -0.2
Belgium -4.9 -2.2 0.2 -1.7 0.7 -2.5 0.6
Europen Union (EU15) -4.7 -1.5 -0.6 -1.4 -0.3 -1.1 0.2
Luxembourg -3.5 -3.3 0.2 -0.5 0.1 0.7 -0.7
Finland -2.6 -2.4 -0.3 -2.0 -0.1 2.3 -0.2
Italy -0.3 -1.3 -0.3 -2.5 0.1 3.3 0.2
Portugal 0.8 -1.4 -0.3 -0.6 -0.5 3.5 0.1
Austria 1.0 1.6 -0.6 1.1 0.1 -1.5 0.2
Spain 1.4 -0.7 -0.5 -0.3 -0.5 3.2 0.2
Hungary 3.6 -2.5 0.1 -0.8 0.7 7.2 -1.0
Slovak Republic 5.2 -1.9 -0.2 -0.7 0.2 8.4 -0.5
Poland 5.8 1.6 0.1 -0.2 0.3 3.9 0.0
Czech Republic 7.9 0.3 0.1 0.0 0.9 7.2 -0.6
Iceland 8.4 7.4 -0.4 1.3 0.4 -0.8 0.5
Greece 11.1 2.2 0.1 0.7 0.0 7.5 0.5
Panel B. Average yearly percentage change over the period considered
Group-specific changes
Compositional Interaction
Period Total Males Females
effect1 term2
Full-time Part-time Full-time Part-time
Ireland 1991-2005 -1.0 -0.5 0.0 -0.2 0.0 -0.3 0.1
Slovak Republic 1998-2005 -0.6 -0.4 0.0 -0.2 0.0 0.0 0.0
Portugal 1991-2005 -0.6 -0.2 0.0 -0.1 0.0 -0.2 0.0
Czech Republic 1997-2005 -0.5 -0.4 0.0 -0.2 0.0 0.1 0.0
France 1991-2005 -0.5 -0.3 0.0 -0.1 0.0 -0.2 0.0
Germany 1991-2005 -0.5 0.1 0.0 0.0 -0.1 -0.4 -0.1
Netherlands 1991-2005 -0.5 0.0 0.1 0.0 0.1 -0.7 0.1
Switzerland 1996-2005 -0.5 0.0 0.0 0.0 0.0 -0.5 0.0
Luxembourg 1991-2005 -0.4 -0.1 0.0 0.0 0.0 -0.4 0.0
Europen Union (EU15) 1995-2005 -0.3 -0.1 0.0 0.0 0.0 -0.3 0.0
Hungary 1996-2005 -0.3 -0.2 0.0 -0.1 0.0 -0.1 0.0
United Kingdom 1991-2005 -0.3 -0.2 0.0 0.0 0.1 -0.2 0.0
Spain 1991-2005 -0.3 0.1 0.0 0.0 0.0 -0.4 0.0
Italy 1991-2005 -0.2 0.1 0.0 0.0 0.0 -0.2 0.0
Greece 1991-2005 -0.1 0.0 0.0 0.0 0.0 -0.1 0.0
Finland 1995-2005 -0.1 0.0 0.0 0.0 0.0 -0.1 0.0
Norway 1995-2005 -0.1 0.0 0.0 0.0 0.0 -0.1 0.0
Sweden 1995-2005 0.1 -0.1 0.0 0.0 0.1 0.1 0.0
Poland 2001-2005 0.1 0.1 0.0 0.1 0.0 0.0 0.0
Belgium 1991-2005 0.1 0.3 0.0 0.1 0.1 -0.4 0.0
Denmark 1991-2005 0.1 0.1 0.0 0.0 0.0 0.0 0.0
Austria 1995-2005 0.1 0.5 0.0 0.2 -0.1 -0.3 -0.1
United States 1992-2005 0.2 0.0 0.0 0.0 0.0 0.1 0.0
Iceland 1995-2005 0.3 -0.2 0.0 -0.1 0.0 0.6 0.0
1. The compositional effect reflects the impact of different group proportions across countries or over time.
2. The interaction term relates to the interaction between group specific differences in hours worked and group proportions (see Annex 3).
Source : European Union Labour Force Survey (EULFS); US Current Population Survey (CPS).
23
Table 2. Values of labour supply elasticities for men and women
from the micro-econometric studies
Panel A. Men
1
Study Country Uncompensated wage elasticity
Blau and Kahn (2005) United States 0.07 (median)

Blomquist (1983) Sweden 0.08; 0.08
Bourguignon and Magnac (1990) France 0.12; 0.1
Blundell and Walker (1986) United Kingdom 0.024
Devereux (2004) United States 0.00 (median)
Hausman (1981) United States 0.00; 0.03
Kaiser et al. (1992) Germany -0.004
2
Kuroda and Yamamoto (2007) Japan 0.69 (extensive and intensive margin); 0.14 (intensive margin).
Ma Curdy et al. (1990) United States 0.00
Van Soest et al. (1990) Netherlands 0.12
Panel B. Women
1
Study Country Uncompensated wage elasticity
3
Arellano and Meghir (1992) United Kingdom 0.29 to 0.71
Arrufat and Zabalza (1986) United Kingdom 2.06 (total): 1.41 (participation), 0.62 (hours conditional on participation)
Bargain (2005) France 0.30 (median)
Blau and Kahn (2005) United States 0.27 (conditional on participation, median)
Blomquist and Hansson-Brusewitz (1990) Sweden 0.77 (full sample); 0.74 (working subsample)
Bourguignon and Magnac (1990) France 1; 0.05
Blundell et al. (1998) United Kingdom No children: 0.14; children 0-2: 0.21; children 3-4: 0.37; children 5-10: 0.13; children 11 +: 0.13
Blundell et al. (1992) United Kingdom Tax selected: 0.16; complete: 0.34; tax selected and grouping: 0.14
Colombino and Del Boca (1990) Italy 1.18 (total): 0.64 (participants), 0.54 (Hours)
Devereux (2004) United States 0.17 (median)
Hausman (1981) United States 0.995; 0.906
Kaiser et al. (1992) Germany 1.04
Kuismanen (1997) Finland -0.01; 0.01
2
Kuroda and Yamamoto (2007) Japan 1.26 (extensive and intensive margin); 0.13 (intensive margin).
Rose-Birch (2005) Australia Mean: 0.33 (25 studies); Data from 1991 onwards (4 studies): 0.67
Smith and Stelcner (1988) Canada Age group: 20-34: 0.149, 35-24: 0.028; 20-54: 0.100.
2
Triest (1990) United States 0.97
Van Soest et al. (1990) Netherlands 0.79
1. Figures separated by semi-colon refer to estimates based on different methodologies.

24
2. This article estimates a Frisch elasticity, based on a dynamic model, contrary to the other articles reviewed here.
3. Elasticities are evaluated at the observed mean wage and virtual income of participants.
Source: Handbook of Labor Economics, Vol. IIIA, Chapter 27 and original articles.
Table 3. Survey of cross-country studies on the impact of taxes on hours worked
Estimated elasticity of hours worked with respect to

Study Sample and estimation period Estimation method
the tax rate1
Alesina, Glaeser and Sacerdote (2005) 18 OECD countries, 1960-1995 -0.50 (Annual hours worked per person, without OLS with and without country year fixed
controlling for country fixed effects);-018 (*) (Annual effects
hours worked per person, controlling for country fixed
effects)
Burgon and Baxandall (2004) 18 OECD countries, not reported -0.28 (***) (Annual hours worked per employee, without FGLS (assuming heteroskedasticity
controlling for country fixed effects);-0.05 (Annual hours across countries) with and without country
worked per employee, controlling for country fixed fixed effects
effects, lagged dependent variable, and the interaction
between union density and female labour force
participation)
Davis and Henrekson (2004) 13 OECD countries, years: 1977, -0.51 (***) (Annual hours worked per person, without OLS with and without country and year
1983, 1990 and 1995 controlling for country fixed effects);-0.12 (Annual hours fixed effects
worked per person, controlling for country fixed effects)
Faggio and Nickell (2007) 17 OECD countries, 1981-1999 Marginal tax rate, spouse (100APW, 0APW): 0.086 (**), OLS with country and year fixed effects
Marginal tax rate, spouse (100APW, 67APW): -0.072
(***), Average Tax wedge: -0.16 (***), Marginal rate
single (100APW): 0.055 (**) (Annual Hours worked per
employed, controlling for country fixed effects).
1. This estimate is approximated in cases where the presented results and data make it possible to compute it. It is defined as the estimated elasticity of hours
worked with respect to the considered tax rate measure. When several taxation measures are used in a single estimation, the table presents the corresponding
elasticities for each of them. This elasticity is the coefficient estimate obtained when regressing the log of hours worked on the tax rate. When the regression
is defined in levels for the dependent variable, it can be approximated by dividing the slope coefficient by average hours worked in the data used for estimation.
Key: * p<.1, ** p<.05, *** p<.01.
25
Table 4. Econometric results of the impact of taxation on annual hours worked at the aggregate level
Dep. var.: Hours worked per employed person (log)
OLS OLS OLS OLS IV
Employment rate -0.361*** -0.387*** -0.387*** -0.395*** -0.419***

[0.106] [0.109] [0.120] [0.106] [0.151]
Output cycle 0.101 0.056 0.187 0.123
[0.182] [0.184] [0.200] [0.184]
Per capita income (log) 0.012 0.037 0.004 -0.01
[0.083] [0.083] [0.092] [0.086]
Taxes and social contributions / Gdp 0.207
[0.132]
(Taxes and social contributions + Indirect taxes) / Gdp 0.251** 0.307*** 0.321***
[0.106] [0.105] [0.099]
Average tax wedge 0.011
[0.062]
Average marginal tax wedge on second earner -0.143** -0.145*
[0.066] [0.074]
Observations 167 167 167 167 167
R-squared 0.99 0.99 0.99 0.99 0.99
Sargan test (p-value) 0.41
Notes:
* p<.1, ** p<.05, *** p<.01
Heteroskedasticity- and autocorrelation-robust standard errors in brackets.
Each equation includes country and year dummies. The employment rate is instrumented to avoid endogeneity problems. Instruments are lagged average replacement rate,
lagged EPL , PMR indicators and lagged output gap. The countries included in the panel are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany,Greece,
Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom and the United States.
The output gap indicator is the log of real GDP filtered through the Hodrick and Prescott (1997) filter. The smoothing parameter is set at 6.25 as recommended by
Ravn and Uhlig (2002) for annual data.
Source: OECD Economic Outlook ; Bassanini and Duval (2006); OECD Taxing Wages ; Conway, De Rosa, Nicoletti and Steiner (2006).
26
Table 5. Econometric results of the impact of taxation on weekly hours worked at a disaggregated level
Without taking account of the existence of

Taking account of the existence of children
children
Men Women Men Women
Employment rate 0.001 -0.001 0.000 0.001

[0.002] [0.005] [0.001] [0.002]
Low education -0.043 -0.103 -0.035* -0.087
[0.027] [0.108] [0.019] [0.079]
High education 0.054*** 0.095* 0.049*** 0.065
[0.015] [0.057] [0.011] [0.044]
Married 0.072*** -0.138 0.057*** -0.112**
[0.015] [0.084] [0.010] [0.053]
With children 0.007 -0.061
[0.014] [0.052]
Average tax wedge 0.08 -0.703*** 0.004 0.088
[0.083] [0.268] [0.068] [0.201]
Marginal tax wedge -0.136** -0.730*** -0.084 -0.812***
[0.060] [0.224] [0.055] [0.215]
Interaction married x average tax wedge -0.151** 0.089 -0.101** 0.127
[0.068] [0.149] [0.046] [0.126]
Interaction low education x average tax wedge 0.136* 0.119 0.108** 0.181
[0.070] [0.194] [0.051] [0.187]
Interaction high education x average tax wedge -0.111* -0.154 -0.087* -0.159
[0.059] [0.166] [0.048] [0.139]
Interaction children x average tax wedge -0.028 -0.084
[0.032] [0.151]
Observations 984 1164 1236 1512
Sargan test (p-value) 0.47 0.52 0.59 0.30
N_clusters 132 126 180 168
Notes: * p<.1, ** p<.05, *** p<.01.
Each equation includes country and year dummies. Weighted estimation. Standard errors in brackets are clustered by country x marital status x education
( x children in columns 3 and 4).The employment rate is instrumented as follows.
Equations for men: Instruments are marital status interacted with education level and lagged average replacement rate interacted with education level.
In the equation controlling for the presence of children, additional instruments are interactions of marital status and presence of children.
Equations for women: Instruments are marital status interacted with education level and lagged EPL on regular contracts interacted with education level.
In the equation controlling for the presence of children, additional instruments are interactions of education level with the presence of children.
The countries included in the panel are: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany,Greece, Hungary, Ireland, Italy,
Luxembourg, the Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, the United Kingdom and the United States.
Differences in the number of observations between estimates for men and women are due to the absence of Luxembourg in equations for women. This absence
is caused by lacking data on EPL on regular contracts, used as instrument for the employment rate in equations for women.
Sources : European Labor Force Survey, Current Population Survey, Bassanini and Duval (2006), OECD Taxing Wages ,
Conway, De Rosa, Nicoletti and Steiner (2006) and Secretariat calculations.
27
Table 6. Impact of marginal tax wedges on the intensive and extensive

margins of the labour market
Panel A. Prime-age women
weekly employment
hours rate
Elasticity to marginal tax wedge -0.34 -0.15
Elasticity to average tax wedge in Bassanini

-0.22
and Duval (2005)
Panel B. Prime-age men
weekly employment
hours rate
Elasticity to marginal tax wedge -0.07 0.00
Elasticity to average tax wedge in Bassanini

-0.10
and Duval (2005)
28
Table 7. Normal and overtime hours limits

across OECD countries, 2005
Normal weekly hours limits Weekly hours limits

excluding overtime1 including overtime
France 35.0 39.8

Spain 40.0 41.7
Greece 40.0 43.0
Portugal 40.0 43.5
Sweden 40.0 44.4
Austria 40.0 45.0
Finland 40.0 45.3
Italy 40.0 45.3
Belgium 38.0 48.0
Czech Republic 40.0 48.0
Canada 40.0 48.0
Denmark 37.0 48.0
Germany 37.7 48.0
Hungary 40.0 48.0
Ireland 39.0 48.0
Luxembourg 40.0 48.0
Netherlands 40.0 48.0
Poland 40.0 48.0
Slovak Republic 40.0 48.0
Switzerland 45.0 48.0
Norway 40.0 48.5
Korea 40.0 52.0
Australia 38.0 2 No limit
Japan 40.0 No limit
United Kingdom 37.2 No limit 3
United States 40.0 4 No limit 4
1. In countries where there is no statutory normal weekly hours limits (Denmark, Germany, Ireland, Poland and the United Kingdom),
collectively agreed weekly hours limits are reported instead.
2. In most collective agreements.
3. The United Kingdom is exempted from the 48 maximum weekly hours limit (including overtime) in the 1993
European Union Directive.
4. At the federal level.
Source: EIRO and ILO databases.
29
Table 8. Working-time flexibility1 indicator

across OECD countries, 2005
Flexibility indicator
United Kingdom 1.77

Australia 1.50
United States 1.41
Poland 1.33
Korea 1.31
Italy 1.31
Denmark 1.30
Ireland 1.30
Norway 1.30
Portugal 1.29
Finland 1.29
Japan 1.27
Switzerland 1.19
Belgium 1.16
Spain 1.16
Germany 1.13
France 1.13
Netherlands 1.12
Austria 1.12
Canada 1.11
Sweden 1.01
Greece 1.00
Luxembourg 0.84
1. Flexibility refers to the possiblity of adjusting daily and weekly

hours worked over a given period of time, as provided by
the regulatory framework of each country (see Annex 5).
Source: Secretariat calculations.
30
1
Table 9. Regulations providing incentives for part-time work, around 2005
Incentives for employers2 Incentives for employees2 Incentives for unemployed2 Others2
Index of part-
Hours or earnings time work
Reduction of social security Hours or earnings Benefits or allowances Possibility of combining
thresholds under which Regulations or legislations
contributions as a thresholds to be eligible to related to working time unemployment benefits incentives3
employers are exempted that affect the amount of
counterpart of working time social security benefits reductions and earnings from working
from social security part-time jobs
reductions part-time
contributions
Belgium + + + 0.70
United Kingdom + + 0.78
France + + + + 0.83
Greece + + 0.87
Finland + 0.90
Germany + - + + 0.90
Netherlands + + + 0.90
Norway + + 0.90
Portugal + + + 0.90
Austria + + 0.93
Spain + 0.93
Canada + 0.97
Italy + 0.97
Luxembourg + 0.97
Australia + 0.97
Ireland +- +- 1.00
Japan - 1.00
Korea 1.00
Poland 1.00
Sweden - - 1.00
Switzerland 1.00
United States - 1.00
Denmark - - + - 1.03
1. Annex 5 provides a more detailed version of this table.
2. A "+" sign indicates the existence of measures providing an incentive to work part-time and a "-" sign, an incentive to work full-time instead of part-time.
3. This index is below (above) unity when there are (dis)incentives to work part-time.
Sources: OECD (1998, 2004b, 2004c)
31
Table 10. Public holidays, paid leave, sickness and maternity leave across OECD countries, 2005
Public holidays Paid leave Sickness leave Maternity leave total
Benefits (in % Benefits (in %

Maximum Generosity Maximum Generosity
of previous of previous
weeks weeks duration in index duration in index
earnings) earnings)
weeks weeks
[4] [7]
[1] [2] [3] [5]=[3].[4] [6] [8]=[6].[7] [1]+[2]+[5]+[8]
United States1 1.7 2.2 0.0 0.0 0.0 0.0 0.0 0.0 3.9
Australia 1.3 4.0 1.3 1.0 1.3 12.0 1.0 12.0 18.7
Korea 2.5 2.5 0.0 0.0 0.0 15.0 1.0 15.0 20.0
OECD 1.8 2.7 37.4 0.4 14.8 13.9 0.6 8.2 27.6
Ireland 1.5 3.3 52.0 0.3 15.1 18.0 0.8 14.4 34.3
Italy 1.7 3.3 24.0 0.6 15.6 20.0 0.8 16.0 36.6
Canada 1.7 2.0 15.0 0.6 8.3 50.0 0.6 27.5 39.4
United Kingdom 1.3 3.3 52.0 0.2 11.6 26.0 0.9 23.4 39.6
France 1.8 4.2 52.0 0.5 26.0 16.0 1.0 16.0 48.0
Belgium 1.3 3.3 52.0 0.6 31.8 15.0 0.8 11.5 48.0
Finland 1.7 3.3 51.5 0.5 24.0 43.8 0.5 19.7 48.7
Poland 1.8 3.3 35.8 0.8 28.7 18.0 1.0 18.0 51.8
Greece 1.7 3.3 52.0 0.6 29.9 19.8 0.9 18.7 53.6
Spain 1.8 3.7 52.0 0.7 38.7 16.0 1.0 16.0 60.2
European Union (EU19) 1.6 3.5 61.1 0.6 36.8 20.3 0.9 19.0 61.0
Japan 2.5 1.7 72.0 0.7 48.0 16.3 0.7 10.9 63.0
Austria 1.7 4.2 64.0 0.7 42.6 16.0 1.0 16.0 64.4
Luxembourg 1.7 4.2 52.0 1.0 52.0 16.0 1.0 16.0 73.8
Denmark 1.5 4.2 52.0 1.0 52.0 18.0 1.0 18.0 75.7
Germany 1.5 3.3 84.0 0.7 60.6 14.0 1.0 14.0 79.4
Switzerland 1.5 4.0 123.0 0.5 63.0 17.0 0.8 14.2 82.7
Netherlands 1.3 3.3 104.0 0.7 72.8 16.0 1.0 16.0 93.5
Norway 1.3 3.5 54.7 1.0 54.7 43.0 1.0 43.0 102.5
Portugal 2.0 3.7 182.5 0.7 127.8 20.0 1.0 20.0 153.4
Sweden 1.5 4.2 104.0 0.8 83.2 96.0 0.7 67.2 156.1
Note: Average for OECD and European Union (EU19) are weighted by employment levels.
1. At the federal level.
Source: Secretariat calculations (see Annex 5).
32
Table 11. Overall indicator of working-time regulations relative to annual hours worked, 2005
Overtime (as Paid leave Aggregate

Aggregate Maternity Aggregate
Normal a ratio of Part-time and public Sick leave weeks
weekly leave level
weekly hours normal incentive holidays (in adjustment worked
indicator adjustment indicator
hours) weeks) indicator
Portugal 40.0 1.0 0.9 37.7 5.7 -0.1 -0.3 28.7 1084.1
Sweden 40.0 1.1 1.0 44.4 6.2 -0.3 -0.2 25.2 1118.0
France 35.0 1.1 0.8 32.8 6.0 -0.1 -0.1 41.4 1359.5
Norway 40.0 1.2 0.9 41.8 4.8 -0.2 -0.1 33.0 1380.5
Belgium 38.0 1.2 0.7 31.9 4.7 0.0 -0.1 43.3 1381.8
Greece 40.0 1.0 0.9 36.0 5.0 -0.1 -0.1 40.9 1470.7
Finland 40.0 1.1 0.9 38.6 5.0 -0.1 -0.1 40.9 1579.4
Spain 40.0 1.0 0.9 38.9 5.5 -0.1 -0.1 40.7 1584.3
Austria 40.0 1.1 0.9 40.9 5.8 -0.1 -0.1 40.4 1650.3
Luxembourg 40.0 1.1 1.0 42.3 5.8 -0.1 -0.1 39.2 1660.6
Germany 48.0 1.0 0.9 43.2 6.5 0.0 -0.1 39.1 1690.4
Netherlands 40.0 1.2 0.9 44.5 4.7 -0.1 -0.1 39.1 1737.5
Canada 40.0 1.1 1.0 43.3 3.7 -0.1 0.0 43.0 1862.0
Italy 40.0 1.1 1.0 43.1 5.0 -0.1 0.0 43.7 1882.1
Denmark 48.0 1.0 1.0 49.6 5.7 -0.1 -0.1 38.2 1896.0
Poland 48.0 1.0 1.0 48.0 5.2 -0.1 -0.1 40.7 1955.8
Ireland 48.0 1.0 1.0 48.0 4.8 0.0 0.0 44.3 2128.2
Switzerland 46.5 1.1 1.0 49.4 5.5 0.0 0.0 44.2 2180.2
United Kingdom 78.0 1.0 0.8 61.1 4.7 -0.1 0.0 41.7 2545.0
Korea 40.0 1.6 1.0 62.7 5.0 0.0 0.0 45.1 2830.7
Australia 38.0 1.7 1.0 62.6 5.3 0.0 0.0 46.2 2891.0
Japan 40.0 1.8 1.0 72.1 4.2 0.0 -0.1 43.8 3156.7
United States 40.0 1.7 1.0 68.5 3.9 0.0 0.0 48.1 3294.9
Source: Secretariat calculations (see Annex 5).
33
Table 12. Econometric results of the impact of working-time regulations on weekly hours worked at a disaggregated level
Men Women
Employment rate -0.004* -0.002

[0.002] [0.005]
Low education 0.153** 0.087
[0.070] [0.230]
High education -0.171** 0.179
[0.067] [0.216]
Married 0.076*** -0.161*
[0.017] [0.089]
Average tax wedge 0.08 -0.603**
[0.093] [0.284]
Marginal tax wedge -0.033 -0.767***
[0.077] [0.242]
Interaction married x average tax wedge -0.021 0.119
[0.074] [0.156]
Interaction low education x average tax wedge -0.115 -0.078
[0.092] [0.302]
Interaction high education x average tax wedge 0.187* -0.209
[0.098] [0.276]
Average of weekly normal hours and of weekly normal hours and overtime 0.006*** 0.002
[0.002] [0.002]
Interaction low education x average of weekly normal hours and of weekly normal hours and overtime -0.003*** -0.003
[0.001] [0.004]
Interaction high education x average of weekly normal hours and of weekly normal hours and overtime 0.003*** -0.001
[0.001] [0.002]
Average of weekly normal hours and of weekly normal hours and overtime squared
Observations 966 1134

Sargan test (p-value) 0.67 0.9
N_clusters 126 120
Notes: * p<.1, ** p<.05, *** p<.01.
Each equation includes country and year dummies. Weighted estimation. Standard errors in brackets are clustered by country x marital status x education.
The employment rate is instrumented as follows.
Equations for men: Instruments are marital status interacted with education level, lagged average replacement rate interacted with education level.
In the equation controlling for the presence of children, additional instruments are interactions of marital status and presence of children.
In the equation controlling for the presence of children, additional instruments are interactions of education level with the presence of children.
Luxemburg, the Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, the United Kingdom and the United States.
Differences in the number of observations between men and women estimates are due to the absence of Luxembourg in equations for women. This absence
is caused by lacking data on EPLr, used as an instrument for the employment rate in the equations for women.
34
Sources: European Labour Force Survey, Current Population Survey (CPS), OECD Economic Outlook , Bassanini and Duval (2006), OECD Taxing Wages ,
Conway, De Rosa, Nicoletti and Steiner (2006), and Secretariat calculations.
Table 13. Econometric results of the impact of other labour and product market regulations on weekly hours worked
at a disaggregated level
Men Women Men Women Men1 Women1 Men Women
1 2 3 4 5 6 7 8
Employment rate 0.001 -0.001 -0.002 -0.002 0 -0.001 -0.002 -0.004

[0.002] [0.004] [0.002] [0.005] [0.002] [0.005] [0.002] [0.006]
Low education -0.047** -0.115 -0.049*** -0.133 -0.045* -0.113 -0.050*** -0.146
[0.024] [0.098] [0.018] [0.105] [0.025] [0.116] [0.014] [0.135]
High education 0.056*** 0.101** 0.046*** 0.08 0.055*** 0.091 0.017 0.172**
[0.013] [0.049] [0.014] [0.061] [0.015] [0.059] [0.018] [0.075]
Married 0.072*** -0.155* 0.071*** -0.162* 0.070*** -0.148 0.068*** -0.186*
[0.014] [0.080] [0.013] [0.090] [0.015] [0.092] [0.015] [0.107]
Average tax wedge 0.081 -0.588** 0.064 -0.735*** 0.085 -0.639** 0.012 -0.502*
[0.084] [0.234] [0.077] [0.254] [0.085] [0.255] [0.080] [0.281]
Marginal tax wedge -0.141** -0.791*** -0.113* -0.805*** -0.106 -0.757*** -0.049 -0.797***
[0.059] [0.232] [0.066] [0.250] [0.071] [0.254] [0.062] [0.262]
Interaction married x average tax wedge -0.138** 0.13 -0.074 0.115 -0.127* 0.105 -0.063 0.149
[0.064] [0.143] [0.070] [0.148] [0.072] [0.158] [0.067] [0.176]
Interaction low education x average tax wedge 0.126** 0.104 0.041 -0.015 0.134** 0.149 0.034 -0.01
[0.061] [0.185] [0.058] [0.210] [0.064] [0.188] [0.063] [0.233]
Interaction high education x average tax wedge -0.087 -0.279 0.072 0.271* -0.107* -0.133 0.085 -0.408*
[0.059] [0.179] [0.061] [0.143] [0.060] [0.159] [0.080] [0.235]
EPL (regular) -0.057*** -0.026
[0.013] [0.037]
Interaction low education x EPL (regular) 0.012*** 0.015
[0.004] [0.025]
Interaction high education x EPL (regular) -0.014*** 0.030*
[0.004] [0.018]
PMR -0.006 0.011 -0.012*** 0.004
[0.004] [0.023] [0.002] [0.016]
Interaction low education x PMR 0.008* 0.02
[0.004] [0.016]
Interaction high education x PMR -0.021*** -0.051***
[0.007] [0.014]
Union density -0.101 0.261*** -0.017 0.544***
[0.069] [0.089] [0.088] [0.172]
Interaction low education x union density 0.022 0.057
[0.027] [0.068]
Interaction high education x union density -0.040* 0.161**
[0.023] [0.065]
Interaction PMR x union density -0.068*** -0.024
[0.016] [0.030]
Observations 858 930 792 792 780 780 965 1164
Sargan test (p-value) 0.31 0.67 0.2 0.08 0.08 0.5 0.68 0.54
N_clusters 126 126 102 102 102 102 126 126
Notes: * p<.1, ** p<.05, *** p<.01.
Each equation includes country and year dummies. Weighted estimation. Standard errors in brackets are clustered by country x marital status x education.
The employment rate is instrumented as follows.
Equations for men: Instruments are marital status interacted with education level and lagged average replacement rate interacted with education level.
Luxemburg, the Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, the United Kingdom and the United States.
Differences in the number of observations between men and women estimates are due to the absence of Luxembourg in equations for women. This absence
is caused by lacking data on EPLr, used as instrument for the employment rate in the equations for women.
1. The interaction between union density and product market regulation is computed with demeaned policy variables.
Sources: European Labour Force Survey, Current Population Survey (CPS), OECD Economic Outlook , Bassanini and Duval (2006), OECD Taxing Wages ,
Conway, De Rosa, Nicoletti and Steiner (2006), and Secretariat calculations.
35

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For Official Use ECO/CPE/WP1(2007)11/ANN1

Organisation de Coopération et de Développement Economiques

Working Party No. 1 on Macroeconomic and Structural Policy Analysis

FACTORS EXPLAINING DIFFERENCES IN HOURS WORKED ACROSS OECD COUNTRIES

ANNEX 1: FIGURES AND TABLES

Document complet disponible sur OLIS dans son format d'origine

1. Average annual hours worked per employed person, 2005

Figure 1. Average annual hours worked per employed person

Average annual hours actually worked per worker

Average annual per cent change

Figure 4. Average annual hours worked per full-time employee

Panel A. Intensity of part-time work

Average annual hours worked by part-time employee

Panel B. Incidence of part-time work

Part-time employees, per cent of total employees

Figure 6. Average usual weekly hours worked per employed person

Average weekly hours worked per employed person

Employment, per cent

Source : European Union Labour Force Survey (EULFS).

Usual weekly hours worked

Panel B. Usual weekly hours worked by age-group

Usual weekly hours worked

Panel C. Usual weekly hours worked by education level

Usual weekly hours worked

Usual weekly hours worked

Usual weekly hours worked

officials and managers

and fishery workers

Note: Average for OECD is weighted by employment levels.

Average annual percentage change over the period considered

Due to annual weeks worked deviations

Greece Sweden 1995-2005

Total annual hours worked Per cent

Marginal tax wedge1 Median

0.65 T-statistic: 8.25

Average tax wedge1

Average marginal tax rates

Source: OECD, Economic Outlook, No.81.

Figure 14. Annual hours worked and tax variables, 2005

Panel A. Average tax wedge at the household level

Annual hours worked per person in employment

Panel B. Aggregate tax wedge at the country level

Annual hours worked per person in employment

Panel C. Average marginal tax wedge on second earner

Annual hours worked per person in employment

Panel A. Without children

Weekly hours worked

40 Svk Cze T-statistic: -2.86***

Panel B. With children

Weekly hours worked

40 Cze Slope: -24.69

Panel A. Impact on weekly hours per employed person

Change in per cent

Panel B. Impact on weekly labour supply of women

Change in per cent

Note: Average for OECD is weighted using employment levels.

Panel A. Impact on weekly hours worked of women

Change in per cent

Panel B. Impact on labour supply of women

Change in per cent

Note: Average for European countries is weighted by employment levels.

Panel C. Impact on weekly women labour supply1

Employment rate -0.361* -0.387* -0.387* -0.395* -0.419***