Working Time as an Investment? – The Effects of Unpaid Overtime on Wages, Promotions and Layoffs
AbstractWhereas the number of paid overtime hours declined over the last decade, a different trend can be observed for unpaid overtime work in Germany. We look at the future consequences for overtime workers, and therefore investigate the investment character of working time. We examine whether unpaid extra hours induce a higher likelihood of promotion and pay rise, and whether they reduce the risk of losing the job. Using longitudinal micro data from the GSOEP for the years 1991 to 2002 we find significant positive effects of unpaid overtime work on future payoffs, but also a positive impact on the probability of job loss. Therefore, we find only partial evidence for the investment character of unpaid overtime.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Sonderforschungsbereich 649, Humboldt University, Berlin, Germany in its series SFB 649 Discussion Papers with number SFB649DP2005-032.
Length: 27 pages
Date of creation: Jun 2005
Date of revision:
overtime; unpaid work; promotion; wage growth; layoff;
Other versions of this item:
- Silke Anger, 2005. "Working Time as an Investment?: The Effects of Unpaid Overtime on Wages, Promotions, and Layoffs," Discussion Papers of DIW Berlin 535, DIW Berlin, German Institute for Economic Research.
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- J4 - Labor and Demographic Economics - - Particular Labor Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-10-29 (All new papers)
- NEP-BEC-2005-10-29 (Business Economics)
- NEP-LAB-2005-10-29 (Labour Economics)
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.:
- Bauer, Thomas & Zimmermann, Klaus F, 1999.
"Overtime Work and Overtime Compensation in Germany,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 46(4), pages 419-36, September.
- Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Overtime Work and Overtime Compensation in Germany," IZA Discussion Papers 48, Institute for the Study of Labor (IZA).
- Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December.
- Bell, David N.F. & Hart, Robert A. & Hübler, Olaf & Schwerdt, Wolfgang, 2000. "Paid and Unpaid Overtime Working in Germany and the UK," IZA Discussion Papers 133, Institute for the Study of Labor (IZA).
- Bell, David N F & Hart, Robert A, 1999.
London School of Economics and Political Science, vol. 66(262), pages 271-90, May.
- Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2003. "A sticky floors model of promotion, pay, and gender," European Economic Review, Elsevier, vol. 47(2), pages 295-322, April.
- Landers, Renee M & Rebitzer, James B & Taylor, Lowell J, 1996. "Rat Race Redux: Adverse Selection in the Determination of Work Hours in Law Firms," American Economic Review, American Economic Association, vol. 86(3), pages 329-48, June.
- Akerlof, George A, 1984. "Gift Exchange and Efficiency-Wage Theory: Four Views," American Economic Review, American Economic Association, vol. 74(2), pages 79-83, May.
- Bell, Linda A. & Freeman, Richard B., 2001.
"The incentive for working hard: explaining hours worked differences in the US and Germany,"
Elsevier, vol. 8(2), pages 181-202, May.
- Linda A. Bell & Richard B. Freeman, 2000. "The Incentive for Working Hard: Explaining Hours Worked Differences in the U.S. and Germany," NBER Working Papers 8051, National Bureau of Economic Research, Inc.
- Anger, Silke, 2005.
"Unpaid Overtime in Germany: Differences between East and West,"
EconStor Open Access Articles,
ZBW - German National Library of Economics, pages 17-27.
- Silke Anger, 2005. "Unpaid Overtime in Germany: Differences between East and West," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 125(1), pages 17-27.
- Anger, Silke, 2003. "Unpaid overtime in Germany : differences between East and West," SFB 373 Discussion Papers 2003,42, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Markus Pannenberg, 2005. "Long-Term Effects Of Unpaid Overtime," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(2), pages 177-193, 05.
- Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
- Sjögren Lindquist, Gabriella, 2010.
"Tournaments and unfair treatment,"
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics),
Elsevier, vol. 39(6), pages 670-682, December.
- Silke Anger, 2008.
"Overtime Work As A Signaling Device,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 55(2), pages 167-189, 05.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (RDC-Team).
If references are entirely missing, you can add them using this form.