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Long Working Hours Make Us Less Productive but Also Less Costly

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  • Francoise Delmez
  • Vincent Vandenberghe

Abstract

This paper develops and assesses empirically a simple model of firms’ optimal decision regarding working hours, where productivity varies with hours and where the firm faces quasi‐fixed labour costs. Using Belgian firm‐level data on production, labour costs, workers, and hours, and focusing on the estimation of elasticities along the isoquant and the isocost, we find evidence of not only declining productivity of hours but also of quasi‐fixed labour costs in the range of 20 per cent of total labour costs. The tentative conclusion is that firms facing such costs are enticed to raise working hours, even if this results in lower productivity.

Suggested Citation

  • Francoise Delmez & Vincent Vandenberghe, 2018. "Long Working Hours Make Us Less Productive but Also Less Costly," LABOUR, CEIS, vol. 32(4), pages 259-287, December.
    • Handle: RePEc:bla:labour:v:32:y:2018:i:4:p:259-287
    DOI: 10.1111/labr.12128
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    Cited by:

    1. Andrea Garnero & François Rycx & Isabelle Terraz, 2020. "Productivity and Wage Effects of Firm‐Level Collective Agreements: Evidence from Belgian Linked Panel Data," British Journal of Industrial Relations, London School of Economics, vol. 58(4), pages 936-972, December.
    2. Vincent VANDENBERGHE, 2021. "Health, cognition and work capacity beyond the age of 50: International evidence on the extensive and intensive margins of work," International Labour Review, International Labour Organization, vol. 160(2), pages 271-310, June.
    3. Vincent Vandenberghe, 2021. "Work beyond the age of 50. What role for mental versus physical health?," LABOUR, CEIS, vol. 35(3), pages 311-347, September.
    4. Vandenberghe, Vincent, 2019. "Health, Cognition and Work Capacity Beyond the Age of 50," GLO Discussion Paper Series 295, Global Labor Organization (GLO).
    5. Chama CHIPETA & Thomas HABANABAKIZE & Mulatu Fekadu ZERIHUN, 2024. "The Non-Agricultural Labour Productivity Effects of Working Time: South Africa’s Case," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(1), pages 61-77, February.
    6. Vincent Vandenberghe, 2020. "The Rather Limited Role Of Mental Ill Health In Driving Work Beyond 50," LIDAM Discussion Papers IRES 2020020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    7. Ana I. Moro Egido & Joaquin Naval & Jose I. Silva, 2023. "Part-time hours and wages," ThE Papers 23/06, Department of Economic Theory and Economic History of the University of Granada..

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