Does a reduction in the length of the working week reduce unemployment? Some evidence from the Italian economy during the Great Depression

This paper studies the Italian labor market during the 1930s. Using monthly data on eight manufacturing sectors for the period 1929-1939, we evaluate the effects of the introduction, at the end of 1934, of the 40 h working week on the demand for labor. The results support the view that the reduction of the level of standard hours can be effective in stimulating employment provided that it does not imply an increase in hourly wage rates.