The relationship between working time and life satisfaction is gaining increasing attention, shifting from traditional views emphasizing income's role in well-being. While previous studies have confirmed a link between reduced working time and increased life satisfaction, and explored this relationship across various countries (e.g., Europe vs. USA, Latin America vs. USA), a comprehensive examination of this nexus specifically within Germany, considering the mediating role of health and cross-partner effects, remains absent. This study addresses this gap by exploring the impact of working hours on the life satisfaction of Germans, including partnered couples. The study's contribution lies in (1) confirming the positive effect of shorter working hours on life satisfaction in Germany, (2) quantifying health's mediating role in the worktime-health-life satisfaction relationship, (3) analyzing how income levels influence working hour preferences (high-earners working more, low-earners working less), and (4) identifying cross-partner effects of working hours on life satisfaction.

Existing literature reveals a complex relationship between working time and life satisfaction, influenced by various factors. Overtime work often reduces life satisfaction due to work-life imbalance and stress, though voluntary overtime can sometimes increase well-being due to increased income and accomplishment. Country-specific differences exist; for example, French employees may be more satisfied with longer hours than British employees, influenced by welfare systems and tax rates. Part-time work can support work-life balance, particularly for women, though effects vary based on family structure. The cross-partner effect is also discussed, with some studies suggesting that a husband's full-time job might enhance the wife's happiness, while others highlight cultural influences on this relationship. However, previous research on Germany, despite its significant economic and demographic scale, lacks a comprehensive analysis of the life satisfaction and working hours nexus, particularly concerning the mediating role of health and cross-partner impacts.

This study utilizes data from the eighth round (2016-17) of the European Social Survey (ESS), focusing on the German sample (2852 valid respondents). Life satisfaction is treated as the ordinal dependent variable, and working hours (paid and unpaid) as the primary independent variable. An ordered probit model is employed due to the ordinal nature of the dependent variable and its frequent use in related literature, allowing for marginal effect analysis. The model includes control variables: gender, age, education, social inclusion, income, and health condition. To analyze the mediating role of health, the study employs a two-step approach: first, regressing health on working hours and individual characteristics; second, decomposing the effect of working time on life satisfaction into direct and indirect (via health) effects. Marginal effects are calculated to interpret the influence of independent variables on the probability of each life satisfaction level. Further analyses investigate income group differences through interaction terms between income (low, middle, high) and working hours. Additionally, the effects of different working hour categories (1-30h, 31-40h, 41-50h, 50+h) are explored, considering cross-partner effects. Robustness checks include using 'happiness' as the dependent variable and applying an ordered logit model.

The ordered probit model shows a statistically significant negative relationship between working time and life satisfaction in Germany. Shorter working hours are associated with increased life satisfaction. The model's control variables reveal expected effects: income, age, and social inclusion positively influence life satisfaction, while health has a significant positive impact. Gender and education show no significant correlations. The mediating role of health is confirmed; working time's indirect effect on life satisfaction (through health) accounts for about 28% of the total effect. Income group analysis reveals high-earners tend to work longer hours than low-earners. Cross-partner effects exist; shorter working weeks for husbands are associated with higher life satisfaction for wives, and longer working hours for wives are associated with higher life satisfaction for husbands. Robustness checks using happiness as the dependent variable and the ordered logit model yield consistent results.

The findings confirm the hypothesis that reduced working hours promote life satisfaction in Germany. The mediating role of health underscores the importance of work-life balance and its impact on physical and mental well-being. The observed income-related differences in working hour preferences reflect potential trade-offs between financial gain and leisure time. The cross-partner effects highlight the intricate interplay between individual working hours and relationship dynamics. These findings support existing literature emphasizing the importance of work-life balance and challenge the assumption that longer hours are always positively correlated with life satisfaction.

This study provides robust evidence that reduced working hours positively impact life satisfaction among Germans, with health serving as an important mediator. Income level influences working hour preferences, and cross-partner effects are present. Policy implications include implementing stricter overtime regulations, considering gender differences when designing work policies (e.g., flexible working hours), and prioritizing measures to protect worker health. Future research should explore potential endogeneity issues, employ threshold models to pinpoint optimal working hour ranges, and investigate other potential mediators, such as social trust, safety, and digitalization's influence on life satisfaction.

The study relies on cross-sectional data, which limits the ability to establish causality definitively. The use of self-reported data may be subject to biases. Unmeasured confounding variables may affect the results. The generalizability of the findings to other countries or contexts with different socio-economic and cultural factors remains to be explored.