The impact of mandatory entitlement to paid leave on employment in the UK

"I evaluate the impact of the UK Working Time Regulations 1998, which introduced mandatory paid holiday entitlement. The regulation gave (nearly) all workers the right to a minimum of 4 weeks of paid holiday per a year. With constant weekly pay this change amounts effectively to an increase in...

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Bibliographic Details
Main Author: Lembcke, Alexander C.
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: London 2014
LSE
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19110540124919387229-The-impact-of-mandatory-entitl.htm
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author Lembcke, Alexander C.
author_facet Lembcke, Alexander C.
collection Library items
description "I evaluate the impact of the UK Working Time Regulations 1998, which introduced mandatory paid holiday entitlement. The regulation gave (nearly) all workers the right to a minimum of 4 weeks of paid holiday per a year. With constant weekly pay this change amounts effectively to an increase in the real hourly wage of about 8.5% for someone going from 0 to 4 weeks paid holiday per year, which should lead to adjustments in employment. For employees I use complementary log-log regression to account for right-censoring of employment spells. I find no increase in the hazard to exit employment within a year after treatment. Adjustments in wages cannot explain this result as they are increasing for the treated groups relative to the control. I also evaluate the long run trend in aggregate employment, using the predicted treatment probabilities in a difference-in-difference framework. Here I find a small and statistically significant decrease in employment. This effect is driven by a trend reversal in employment, coinciding with the treatment."
format TEXT
geographic United Kingdom
id 19110540124919387229_9b2be74e303140db803d75786643e2de
institution ETUI-European Trade Union Institute
is_hierarchy_id 19110540124919387229_9b2be74e303140db803d75786643e2de
is_hierarchy_title The impact of mandatory entitlement to paid leave on employment in the UK
language English
physical 80 p.
Digital
publishDate 2014
publisher London
LSE
spellingShingle Lembcke, Alexander C.
employment
paid leave
regulation
The impact of mandatory entitlement to paid leave on employment in the UK
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=109550292773
title The impact of mandatory entitlement to paid leave on employment in the UK
topic employment
paid leave
regulation
url https://www.labourline.org/KENTIKA-19110540124919387229-The-impact-of-mandatory-entitl.htm