Compliance costs and productivity: an approach from working hours

This study proposes a new approach of measuring compliance costs of rules and regulations by focusing on labor input, and estimates the compliance costs in Japan based on a survey of workers. According to the results, the working hours required to comply with rules and regulations account for more than 20% of total labor input. By industry, this cost is higher in the finance and insurance industry followed by the health and welfare industry, and by firm size, it is higher in large firms. If these costs were halved, overall economic productivity would increase by about 8%.