Exploring the promoting effect of working time reduction on life satisfaction using Germany as a case study

Abstract

Worktime reduction’s effect on life satisfaction is an important issue but one that has not been fully studied. This article fills this gap and uses an ordered probit model to analyse the working time reduction impact on life satisfaction in Germany by using the European Social Survey data, the mediating effect of health and cross-partner effect are also explored. A significantly negative correlation between working time and life satisfaction are revealed, showing that a short working week can improve Germans’ life satisfaction. Health is confirmed to be the important intermediate variable in the ‘worktime–health–life satisfaction’ nexus and about 28% of the satisfaction among German people is due to the change in health explained by working hours. Further, we find that high-earners prefer to work long hours whereas low-earners tend to work less; middle-earners show no personal preferences. Cross-partner effects are confirmed, as a male’s short working week can satisfy their partner, while a female’s long working hours can improve their partner’s life satisfaction. In light of this, working hours should be restricted to avoid unsatisfaction induced by overtime work and overtime compensation regulations should be strictly implemented, policy-makers also need to take gender differences into consideration.