How government taxation and transfer policy influence labour supply behavior is well understood. Governments also regulate the timing and extent of leisure activity which may also influence labor-leisure decisions. Legislative changes in bar opening hours provide a potential quasi-natural experiment of the effect of government regulation on working effort.
This paper examines two recent policy changes, one in England/Wales and one in Spain that increased and decreased opening hours, respectively.
A robust positive causal link between opening hours and absence is demonstrated. Further evidence is provided that longer opening hours cause poorer health outcomes, particularly amongst regular bar attendees.
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