DETERMINING THE OPTIMUM WEEKLY WORKING HOURS FOR TÜRKİYE

Abstract

Working hours, in relation to work-life balance, employee health, and productivity, have been the subject of research in various fields, including economics, social policy, labor law, and health. Following the industrial revolution, technological advances led to a general decline in working hours, driven by a reduced need for labor and transformations in production processes. Technological advances and increased capital intensity have made production processes more efficient, making it possible to achieve the same or higher economic output (GDP) with shorter working hours. This transformation has led to the need to assess the economically optimal working hours.This study aims to determine the optimal weekly working hours at both general and sectoral levels for Türkiye by using the CES (Constant Elasticity of Substitution) production function model. The analysis was conducted using quarterly data from the 2009 - 2023 on GDP, average weekly working hours, and technology levels. The findings indicate that optimal working hours vary by sector and technology level, and that as the level of technology increases, the optimal working time decreases. In the analysis of the optimal weekly working hours that maximize GDP, it was determined that the parameters were significant in the industry and service sectors, and that in the service sector, which meets the model assumptions, the optimal weekly working time was approximately 46 hours and 32 minutes. Considering that the average weekly working time in the sector is 51 hours and 43 minutes, this resulthighlight the need for adopting efficiency-focused work policies to enhance productivity.