This corresponds to a reduction in overtime hours of about one-third. Hours and pay reductions in Japan reflect adjustments along many different margins (cont.) In the absence of publicly available data on the number of hours subsidised, the total number of subsidised hours were estimated using information on total public expenditure on short-time work (Koyo-chosei-jyosei-fem) and the average hourly wage. The high-cost low-impact scenario assumes that the cost of one hour of short-time work to the government equals 90% of the average hourly wage.