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Does the Statutory Overtime Premium Discourage Long Workweeks?

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Author Info
Stephen Trejo (University of California, Santa Barbara)

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Abstract

Using a pooled data set consisting of 20 annual observations on each of eleven major industry groups, I estimate the effects of overtime pay regulation on weekly work schedules. After controlling for workweek trends within industries, the sharp expansions in overtime pay coverage resulting from legislative amendments and Supreme Court decisions produced no discernible impact on overtime hours. This finding is consistent with a model of labor market equilibrium in which straight-time hourly wages adjust to neutralize the statutory overtime premium.

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File URL: http://repositories.cdlib.org/cgi/viewcontent.cgi?article=1068&context=ucsbecon
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Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number wp21-95R.

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Date of creation: 01 Feb 1997
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Handle: RePEc:cdl:ucsbec:wp21-95r

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Related research
Keywords: Statutory ; Overtime ; Premium ; Long Workweeks;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb.. [Downloadable!] (restricted)
  2. Jay Bhattacharya & Thomas DeLeire & Thomas MaCurdy, 2000. "The California Overtime Experiment: Labor Demand and the Impact of Overtime Regulation on Hours of Work," Working Papers 0024, Harris School of Public Policy Studies, University of Chicago. [Downloadable!]
  3. Trejo, Stephen J, 1991. "The Effects of Overtime Pay Regulation on Worker Compensation," American Economic Review, American Economic Association, vol. 81(4), pages 719-40, September. [Downloadable!] (restricted)
  4. Daniel S. Hamermesh & Stephen J. Trejo, 1997. "The Demand for Hours of Labor: Direct Evidence from California," NBER Working Papers 5973, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Andrew Figura, 2004. "Workweek flexibility and hours variation," Finance and Economics Discussion Series 2004-59, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  2. Regt,Erik R.,de, 2005. "Overtime and Short-time with Fluctuating Absenteeism and Demand," Research Memoranda 026, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
  3. Camille Logeay & Sven Schreiber, 2006. "Testing the effectiveness of the French work-sharing reform: a forecasting approach," Applied Economics, Taylor and Francis Journals, vol. 38(17), pages 2053-2068, September. [Downloadable!] (restricted)
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This page was last updated on 2009-10-20.

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