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Paid and Unpaid Overtime Working in Germany and the UK

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Author Info
Bell, David N. F. (University of Stirling)
Hart, Robert A. () (University of Stirling and IZA, Bonn)
Hübler, Olaf (University of Hannover)
Schwerdt, Wolfgang (Université de Paris 1 and CREST)

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Abstract

Significant numbers of employees work more hours in the workplace than their contract stipulates. Such overtime work can either be paid or unpaid. This research considers overtime working in Germany and the UK and shows that the quantitative significance of both paid and unpaid overtime is greater in the UK. Empirical work is based on the UK Labour Force Survey and the German Socio-Economic Panel in 1993. Overtime influences the effective average hourly wage positively in the case where overtime is paid at premium rates and negatively where such hours are not remunerated. We demonstrate via Mincer wage growth equations that accounting for unpaid work leads to revised estimates of experience and tenure both within and between the two countries. We estimate overtime hours equations, using these to test several of our theories that might explain the apparent irrationality of unpaid work.

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File URL: ftp://repec.iza.org/RePEc/Discussionpaper/dp133.pdf
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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 133.

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Length: 38 pages
Date of creation: Mar 2000
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Handle: RePEc:iza:izadps:dp133

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Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
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Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
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Related research
Keywords: Unpaid Overtime hours determination earnings effects

Other versions of this item:

Find related papers by JEL classification:
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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  1. Silke Anger, 2007. "The cyclicality of effective wages within employer-employee matches - evidence from German panel data," Working Paper Series 783, European Central Bank. [Downloadable!]
    Other versions:
  2. Schwarze, Johannes, 2000. "Using Panel Data on Income Satisfaction to Estimate the Equivalence Scale Elasticity," IZA Discussion Papers 224, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Pannenberg, Markus & Wagner, Gert G., 2001. "Overtime Work, Overtime Compensation and the Distribution of Economic Well-Being Evidence for the West Germany and Great Britain," IZA Discussion Papers 318, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Petri Böckerman, 2002. "Overtime in Finland," Finnish Economic Papers, Finnish Society for Economic Research, vol. 15(1), pages 36-54, Spring. [Downloadable!]
  5. Silke Anger, 2005. "Working Time as an Investment? – The Effects of Unpaid Overtime on Wages, Promotions and Layoffs," SFB 649 Discussion Papers SFB649DP2005-032, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany. [Downloadable!]
    Other versions:
  6. 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!]
  7. Pannenberg, Markus, 2002. "Long-Term Effects of Unpaid Overtime: Evidence for West Germany," IZA Discussion Papers 614, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Kerstin Pull, 2002. "Labour Market Regulation and Foreign Direct Investment: US multinationals in Germany and the UK," Discussion Papers 200204, Institute of Labour Law and Industrial Relations in the European Community (IAAEG). [Downloadable!]
  9. Grund, Christian, 2000. "Wages as Risk Compensation in Germany," IZA Discussion Papers 221, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Markus Pannenberg, 2002. "Long-Term Effects of Unpaid Overtime," Discussion Papers of DIW Berlin 293, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  11. Markus Pannenberg & Gert G. Wagner, 2001. "Umfang und Kompensation von Überstunden : eine vergleichende Analyse für Westdeutschland und Großbritannien," Discussion Papers of DIW Berlin 234, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  12. Hübler, Olaf, 2003. "Geschlechtsspezifische Lohnunterschiede (Gender-specific wage differentials)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(4), pages 539-559. [Downloadable!]
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