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The Cost of Overtime Hours in British Production Industries

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Author Info
Hart, Robert A
Ruffell, Robin J

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Abstract

Both theoretical and empirical labor market papers that incorporate the workers-hours dichotomy often contain assumptions about shapes of the overtime premium schedules faced by industry. Using cross-section data for British production industries in three years of sharply contrasting economic climates (1981, 1984, and 1988), this paper investigates empirically the appropriate choice of schedule and, therefore, the industrial cost consequences of changing the average number of overtime hours per period. The analysis tackles problems associated with data disaggregation, the proportion of workers working overtime, omitted variables, heteroscedasticity, and intertemporal variation. Copyright 1993 by The London School of Economics and Political Science.

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Publisher Info
Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 60 (1993)
Issue (Month): 238 (May)
Pages: 183-201
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Handle: RePEc:bla:econom:v:60:y:1993:i:238:p:183-201

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  1. Bauer, Thomas & Zimmermann, Klaus F., 1999. "Overtime Work and Overtime Compensation in Germany," IZA Discussion Papers 48, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Ana Rute Cardoso & Daniel S. Hamermesh & José Varejão, 2008. "The Timing of Labor Demand," UFAE and IAE Working Papers 759.08, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
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  3. Bell, David N. F. & Hart, Robert A., 1999. "Overtime Working in an Unregulated Labour Market," IZA Discussion Papers 44, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Bell, David N. F. & Hart, Robert A., 2003. "How Important Is Guaranteed or Institutionalised Overtime?," IZA Discussion Papers 766, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Hart, Robert A., 2003. "Worker-Job Matches, Job Mobility, and Real Wage Cyclicality," IZA Discussion Papers 881, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Giannelli, Gianna C. & Braschi, Cristina, 2002. "Reducing Hours of Work: Does Overtime Act as a Brake Upon Employment Growth? An Analysis by Gender for the Case of Italy," IZA Discussion Papers 557, Institute for the Study of Labor (IZA). [Downloadable!]
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