Determinants of Voluntary Overtime Decisions
AbstractThis paper develops and estimates a model of the labor supply for overtime work when some workers' choices are constrained by mandatory overtime provisions of employers. Economic incentives are shown to have a significant effect on workers' overtime decision. Policy simulations suggest that an increase in the overtime premium would lead to greater voluntary overtime work, as would a lowering of the level of weekly hours after which the mandatory premium takes effect. The estimated effects of these changes are not quantitatively large, indicating that workers are fairly insensitive to changes in monetary incentives in making overtime decisions. Copyright 1991 by Oxford University Press.
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Bibliographic InfoArticle provided by Western Economic Association International in its journal Economic Inquiry.
Volume (Year): 29 (1991)
Issue (Month): 1 (January)
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- Joao Ricardo Faria & Miguel A. Leon-Ledesma, 2002. "Habit Formation, Work Ethics, and Technological Progress," Studies in Economics 0210, Department of Economics, University of Kent.
- Golden, Lonnie & Wiens-Tuers, Barbara, 2006. "To your happiness? Extra hours of labor supply and worker well-being," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(2), pages 382-397, April.
- Nahra, Tammie A. & Mendez, David & Alexander, Jeffrey A., 2009. "Employing super-efficiency analysis as an alternative to DEA: An application in outpatient substance abuse treatment," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1097-1106, August.
- Allard Dembe, 2009. "Ethical Issues Relating to the Health Effects of Long Working Hours," Journal of Business Ethics, Springer, vol. 84(2), pages 195-208, January.
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