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Work Hours, Wages, and Vacation Leave

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  • Joseph G. Altonji
  • Emiko Usui

Abstract

Using 1975-91 data from the Panel Study of Income Dynamics, the authors provide a set of facts about vacation leave. They show that on average, vacation time taken rose one-to-one with paid vacation, although with variation by year; annual hours worked fell by about one full-time week with every week of paid vacation; the amount by which vacation time taken exceeded time paid was highest for women, union members, and government workers; paid vacation weeks were positively associated with hourly wage rates and, to a lesser extent, with nonwage compensation; and vacation time taken was weakly countercyclical. Vacation leave seems to have been determined by broad employer policy rather than by negotiation between the worker and the firm. In particular, it was strongly related to seniority but depended very little on labor market experience, and for job changers it was only weakly related to vacation on the previous job.

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

Volume (Year): 60 (2007)
Issue (Month): 3 (April)
Pages: 408-437

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Handle: RePEc:ilr:articl:v:60:y:2007:i:3:p:408-437

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Cited by:
  1. Joseph G. Altonji & Jennifer Oldham, 2003. "Vacation laws and annual work hours," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q III, pages 19-29.
  2. Haynes, Jonathan & Sessions, John, 2011. "Work Now, Pay Later? : An Empirical Analysis of the Pension Pay-Trade Off," Department of Economics Working Papers 32992, University of Bath, Department of Economics.
  3. Gene Amromin & Carrie Jankowski & Richard D. Porter, 2005. "Transforming payment choices by doubling fees on the Illinois Tollway," Conference Series ; [Proceedings], Federal Reserve Bank of Boston.
  4. Mark Aguiar & Erik Hurst, 2006. "Measuring trends in leisure: the allocation of time over five decades," Working Papers 06-2, Federal Reserve Bank of Boston.
  5. Mark Wooden & Diana Warren, 2007. "Paid Annual Leave and Working Hours," Melbourne Institute Working Paper Series wp2007n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  6. repec:ese:iserwp:2006-52 is not listed on IDEAS
  7. Barkume, Anthony J., 2007. "Some New Evidence on Overtime Use, Total Job Compensation, and Wage Rates," Working Papers 402, U.S. Bureau of Labor Statistics.
  8. Eugene Amromin & Carrie Jankowski & Richard Porter, 2007. "Transforming payment choices by doubling fees on the Illinois Tollway," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 22-47.
  9. Mark Aguiar & Erik Hurst, 2006. "Measuring trends in leisure," Proceedings, Federal Reserve Bank of San Francisco.
  10. Joachim Inkmann, 2006. "Compensating wage differentials for defined benefit and defined contribution occupational pension scheme benefits," LSE Research Online Documents on Economics 24516, London School of Economics and Political Science, LSE Library.

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