Abstract
<jats:p>This study analyzes the correlation between working hours and productivity in OECD countries, specifically within the banking sector. The shift from an industrial civilization to a knowledge-based economy has led to growing scrutiny of the conventional production model reliant on extended working hours. As digitalization, automation, and cognitive labor gain prominence, the qualitative aspect of working time has become more significant than its mere amount. This study seeks to reevaluate the traditional belief critically that extended working hours inherently result in increased productivity. The initial segment of the paper analyzes the ideas of working time, flexible work, work–life balance, and productivity via historical, legal, and economic lenses, while carefully reviewing the opinions of various economic schools of thought on these issues. We evaluate the historical development of working hours in OECD countries and compare their experiences with decreased workweek practices. This approach facilitates the identification of conceptual and methodological deficiencies in the current literature about the working time–productivity link. The empirical section utilizes panel data analysis derived from the banking sector of OECD countries. The impact of average weekly working hours and the square of this variable on the productivity index of financial institutions is examined, with the ratio of financial system deposits to GDP added as a control variable. The empirical results demonstrate a nonlinear, inverted U-shaped correlation between working hours and production. Consequently, working hours enhance productivity to a specific limit, after which marginal productivity starts to diminish. The findings suggest that in industries characterized by high cognitive demands, extended working hours may result in negative consequences, including burnout, diminished focus, and reduced performance. From Türkiye's viewpoint, the discourse surrounding the reduction of mandatory weekly working hours without corresponding wage reductions seems to be grounded in a substantial economic and social rationale. The study illustrates that the restructuring of working hours serves as both a social policy decision and a strategic economic policy tool regarding productivity, sustainability, and welfare improvement. Keywords: Working Hours, Productivity, Banking Sector, OECD Countries, Panel Data Analysis</jats:p>