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

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  • Cette, G.
  • Chang, S.
  • Konte, M.

Abstract

An empirical analysis is conducted on two panels of 18 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 decreasing 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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Bibliographic Info

Paper provided by Banque de France in its series Working papers with number 315.

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Length: 15 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:bfr:banfra:315

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Keywords: Productivity; Working time; decreasing returns.;

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  1. Bourlès, R. & Cette, G., 2005. "A comparison of Structural Productivity Levels in the Major Industrialised Countries," Working papers 133, Banque de France.
  2. Bourlès, R. & Cette, G., 2006. "Trends in "structural" productivity levels in the major industrialized countries," Working papers 156, Banque de France.
  3. 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.
  4. Ian Dew-Becker & Robert J. Gordon, 2008. "The Role of Labor Market Changes in the Slowdown of European Productivity Growth," NBER Working Papers 13840, National Bureau of Economic Research, Inc.
  5. Belorgey, N. & Lecat, R. & Maury, T-P., 2004. "Déterminants de la productivité par employé : une évaluation empirique en données de panel," Bulletin de la Banque de France, Banque de France, issue 121, pages 87-113.
  6. 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.
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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. repec:rej:journl:v:15:y:2012:i:46:p:303-318 is not listed on IDEAS
  3. 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.

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