|執筆者||Ehung Gi Baek, Wankeun Oh|
Korea’s unemployment rate has returned to the pre-financial crisis level of 1997. However, Korean workers still have the longest working hours among OECD countries. Labor unions and the government are pushing for a reduction in legal working hours to improve the quality of life. This paper investigates the short-run production effects of the reduction in legal working hours on the Korean economy by industry using a twostage approach. The short-run production effect on the Korean economy was negative in all industries and manufacturing was most severely affected by the reduction in legal working hours.