The limitations of overtime limits to reduce long working hours: Evidence from the 2018 to 2021 working time reform in Korea

This article provides a first assessment of the causal impact 2018–2021 reform in Korea meant to combat its long working-hour culture. The consists lowering statutory limit on total weekly working hours from 68 52. We apply difference-in-difference approach which we take advantage stepwise implementation by firm size using individual-level data. present three main findings. First, introduction 52-h reduced but far eliminated incidence more than 52 h. Second, there is some evidence that led reallocation hours, with employees shifting fulltime overtime within new (41–52 h). Third, and tentatively, this likely took place firms account for fewer worked their employees, rather households compensate any income effects. Overall, our results show lower can help lessen culture, an insufficient measure itself fully eradicate it.