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Wages, hours, and overtime premia: Evidence from the British labor market

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Author Info

  • David N. F. Bell
  • Robert A. Hart

Abstract

Unlike the United States, Britain has no national laws regulating overtime hour assignment or compensation. Using individual-level data on male non-managerial workers from the 1998 British New Earnings Survey, the authors investigate relationships among the standard hourly wage rate, hourly earnings (including overtime), the overtime premium, and the length of overtime hours. They find that when overtime is accounted for, average hourly wage earnings are fairly uniform across firms in a given industry, because firms paying below-market-level straight-time wages tend to award above-market-level overtime premiums, and, conversely, firms paying above-market-level straight-time wages provide below-market-level overtime premiums. (Author's abstract.) (Free full-text download available at http://digitalcommons.ilr.cornell.edu/ilrreview/.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 56 (2003)
Issue (Month): 3 (April)
Pages: 470-480

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Handle: RePEc:ilr:articl:v:56:y:2003:i:3:p:470-480

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Cited by:
  1. Peng, Fei & Kang, Lili, 2013. "Market Mechanism and Skill Premiums in the UK 1972-2002," MPRA Paper 50195, University Library of Munich, Germany.
  2. Hart, Robert A. & Ma, Yue, 2013. "Overtime Working and Contract Efficiency," IZA Discussion Papers 7560, Institute for the Study of Labor (IZA).
  3. Rutherford, Alasdair, 2009. "Where is the Warm Glow? Donated Labour and Nonprofit Wage Differentials in the Health and Social Work Industries," Stirling Economics Discussion Papers 2009-20, University of Stirling, Division of Economics.
  4. Kuroda, Sachiko & Yamamoto, Isamu, 2012. "Impact of overtime regulations on wages and work hours," Journal of the Japanese and International Economies, Elsevier, vol. 26(2), pages 249-262.
  5. Peng, Fei & Kang, Lili, 2013. "Cyclical changes in the wage structure of the United Kingdom: a historical review of the GHS 1972-2002," MPRA Paper 47210, University Library of Munich, Germany.
  6. Hart, Robert A. & Ma, Yue, 2008. "Wage-Hours Contracts, Overtime Working and Premium Pay," IZA Discussion Papers 3797, Institute for the Study of Labor (IZA).
  7. Takahashi Katsuhide & Urata Shujiro, 2010. "On the Use of FTAs by Japanese Firms: Further Evidence," Business and Politics, De Gruyter, vol. 12(1), pages 1-17, April.
  8. KURODA, Sachiko & YAMAMOTO, Isamu, 2009. "How are hours worked and wages affected by labor regulations?: -The white-collar exemption and 'name-only managers' in Japan," ISS Discussion Paper Series (series F) f147, Institute of Social Science, The University of Tokyo.

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