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Unpaid Overtime in Germany: Differences between East and West

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Author Info
Silke Anger

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Abstract

Although the standard work week is longer in East than in West Germany, there is a higher incidence and average amount of unpaid overtime in the East. We try to explain the striking differences in unpaid overtime by analyzing the labor supply side. We focus on the investment character of overtime and examine whether workers use unpaid extra hours to signal higher productivity so as to reduce the risk of losing their jobs. Using panel data from the SOEP and approximating the risk of unemployment with regional unemployment rates, we find partial evidence for the unemployment-overtime hypothesis.

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Publisher Info
Article provided by Duncker & Humblot, Berlin in its journal Schmollers Jahrbuch.

Volume (Year): 125 (2005)
Issue (Month): 1 ()
Pages: 17-27
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Handle: RePEc:aeq:aeqsjb:v125_y2005_i1_q1_p17-27

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Related research
Keywords:

Find related papers by JEL classification:
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data

Cited by:
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  1. Silke Anger, 2005. "Working Time as an Investment? – The Effects of Unpaid Overtime on Wages, Promotions and Layoffs," SFB 649 Discussion Papers SFB649DP2005-032, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany. [Downloadable!]
    Other versions:
  2. Sjögren Lindquist, Gabriella, 2006. "Tournaments and Unfair Treatment," Working Paper Series 8/2006, Swedish Institute for Social Research. [Downloadable!]
  3. Silke Anger, 2007. "The Cyclicality of Effective Wages within Employer-Employee Matches: Evidence from German Panel Data," SOEPpapers 34, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
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This page was last updated on 2009-11-3.


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