Effects of Restricting Overtime Hours on the Gender Pay Gap

Organised by

• Department of Economics

Abstract:

This paper estimates the causal impact of restricting overtime hours on the gender pay gap and investigates whether this effect varies by occupational returns to long working hours. South Korea has enforced a maximum of 52 work hours per week since July 2018. Using policy enforcement as a natural experiment, it provides causal evidence on the relationship between long work hours and the gender wage gap. The empirical strategy employs the triple difference estimator, exploiting the variation in policy application time by establishment size and industry. The findings reveal that imposing limits on maximum work hours narrows the gender gaps in overtime hours and hourly wages. The gender pay gap converges more markedly in occupations with higher returns to long hours, particularly among highly educated workers.

'Gender Talks at Villa La Fonte' is a monthly forum dedicated to presenting and discussing gender-related topics. The events include presentations from both internal and occasional external speakers, followed by discussions on the presented topics. The goal is to encourage a dynamic exchange of ideas and perspectives in the field of gender economics. The 'Women in VLF' initiative invites everyone to participate in these inclusive debates, providing an academic perspective on issues that impact our everyday experiences.