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The decreasing returns on working time: an empirical analysis on panel country data

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  • Gilbert Cette
  • Samuel Chang
  • Maty Konte

Abstract

An empirical analysis is conducted on two panels of 18 Organisation for Economic Cooperation and Development (OECD) countries to test whether the elasticity of hourly productivity to working time is negative and decreasing with working time itself. If so, the decreasing returns on working time could be indicative of a fatigue effect that increases with working time. We find that the elasticity of productivity per hour to working time is negative and decreases with working time, but its coefficient is not strongly significant. This study offers empirical support for the hypothesis of a fatigue effect that increases with working time, but with some reservations.

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File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/13504851.2011.558473&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 18 (2011)
Issue (Month): 17 ()
Pages: 1677-1682

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Handle: RePEc:taf:apeclt:v:18:y:2011:i:17:p:1677-1682

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Related research

Keywords: productivity; working time; decreasing returns;

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References

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  1. Christopher F Baum & Steven Stillman, 1999. "DMEXOGXT: Stata module to test consistency of OLS vs XT-IV estimates," Statistical Software Components S401103, Boston College Department of Economics, revised 18 Jun 2003.
  2. Bourlès, R. & Cette, G., 2005. "A comparison of Structural Productivity Levels in the Major Industrialised Countries," Working papers 133, Banque de France.
  3. Dew-Becker, Ian & Gordon, Robert J, 2008. "The Role of Labour Market Changes in the Slowdown of European Productivity Growth," CEPR Discussion Papers 6722, C.E.P.R. Discussion Papers.
  4. Bourlès, R. & Cette, G., 2006. "Trends in "structural" productivity levels in the major industrialized countries," Working papers 156, Banque de France.
  5. Mark E Schaffer & Steven Stillman, 2006. "XTOVERID: Stata module to calculate tests of overidentifying restrictions after xtreg, xtivreg, xtivreg2, xthtaylor," Statistical Software Components S456779, Boston College Department of Economics, revised 02 Nov 2011.
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Cited by:
  1. Renaud Bourlès & Gilbert Cette & Anastasia Cozarenco, 2012. "Employment and Productivity: Disentangling Employment Structure and Qualification Effects," International Productivity Monitor, Centre for the Study of Living Standards, vol. 23, pages 44-54, Spring.
  2. Emilia Herman, 2011. "The Impact of Economic Growth Process on Employment in European Union Countries," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(42), pages 47-67, December.
  3. Emilia Herman & Maria-Ana Georgescu, 2012. "Is there a trade-off between employment and labour productivity in new EU member states?," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 15(45), pages 303-318, December.

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