Recent empirical work finds a negative correlation between product market regulation and aggregate employment. We examine the effect of product market regulations on hours worked in a benchmark aggregate model of time allocation as well as in a standard dynamic model of entry and exit. We find...

The European Working Time Directive lays down minimum safety and health requirements for the organisation of working time in the EU by, for example, establishing that all workers have the right to a limit to weekly working time of 48 hours. However, it also contains the possibility for Member...