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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)

  • Hübler, Olaf

    ()
    (Leibniz University of Hannover)

  • Schwerdt, Wolfgang

    ()
    (European Central Bank)

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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Bibliographic 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: 39 pages
Date of creation: Mar 2000
Date of revision:
Handle: RePEc:iza:izadps:dp133

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Keywords: Unpaid Overtime; hours determination; earnings effects;

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Cited by:
  1. repec:iab:iabmit:v:36:i:4:p:539-559 is not listed on IDEAS
  2. Schank, Thorsten & Schnabel, Claus, 2004. "Betriebliche Determinanten des Überstundeneinsatzes," Discussion Papers 24, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  3. 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.
  4. 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.
  5. Anger, Silke, 2007. "The cyclicality of effective wages within employer-employee matches: evidence from German panel data," Working Paper Series 0783, European Central Bank.
  6. 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.
  7. Grund, Christian, 2000. "Wages as Risk Compensation in Germany," IZA Discussion Papers 221, Institute for the Study of Labor (IZA).
  8. Kornelius Kraft & Julia Lang, 2008. "The Causes and Consequences of Adopting a Works Council," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 228(5+6), pages 512-532, December.
  9. 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.
  10. 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).
  11. Pannenberg, Markus & Wagner, Gert G., 2001. "Why Do 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).
  12. Kerstin Pull, 2002. "Labour Market Regulation and Foreign Direct Investment: US multinationals in Germany and the UK," IAAEG Discussion Papers until 2011 200204, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  13. Markus Pannenberg, 2002. "Long-Term Effects of Unpaid Overtime," Discussion Papers of DIW Berlin 293, DIW Berlin, German Institute for Economic Research.
  14. Petri Böckerman, 2002. "Overtime in Finland," Finnish Economic Papers, Finnish Economic Association, vol. 15(1), pages 36-54, Spring.
  15. Regt,Erik R.,de, 2005. "Overtime and Short-time with Fluctuating Absenteeism and Demand," Research Memorandum 026, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  16. Pannenberg, Markus, 2002. "Long-Term Effects of Unpaid Overtime: Evidence for West Germany," IZA Discussion Papers 614, Institute for the Study of Labor (IZA).

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