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More Hours, More Jobs? The Employment Effects of Longer Working Hours

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Author Info

  • Andrews, Martyn J.

    ()
    (University of Manchester)

  • Gerner, Hans-Dieter

    ()
    (Institute for Employment Research (IAB), Nuremberg)

  • Schank, Thorsten

    ()
    (University of Mainz)

  • Upward, Richard

    ()
    (University of Nottingham)

Abstract

Increases in standard hours have been a contentious policy issue in Germany. Whilst this might directly lead to a substitution of workers by hours, there may also be a positive employment effect due to reduced costs. Moreover, the response of firms differs between firms which offer overtime and those which do not. For a panel of German plants (2001-2006), we analyse the effect of increased standard hours on employment. Using difference-in-difference methods we find that, consistent with theory, overtime plants showed a significant positive employment response, whilst for standard-time plants there is no difference at all between plants which increased standard hours and those which did not.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6652.

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Length: 29 pages
Date of creation: Jun 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6652

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Related research

Keywords: working time; employment; plant-level data; difference-in-differences;

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  1. Andrews, M J & Simmons, R, 2001. "Friday May Never Be the Same Again: Some Results on Work-Sharing from Union-Firm Bargaining Models," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(5), pages 488-516, November.
  2. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521464673.
  3. Corsetti, Giancarlo & Devereux, Michael P. & Guiso, Luigi & Hassler, John & Saint-Paul, Gilles & Sinn, Hans-Werner & Sturm, Jan-Egbert & Vives, Xavier, . "EEAG Report on the European Economy 2010," Monographs in Economics, University of Munich, Department of Economics, University of Munich, Department of Economics, number 20108, April.
  4. Mikal Skuterud, 2007. "Identifying the Potential of Work-Sharing as a Job-Creation Strategy," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 25, pages 265-287.
  5. Raposo, Pedro S. & van Ours, Jan C., 2010. "How working time reduction affects jobs and wages," Economics Letters, Elsevier, Elsevier, vol. 106(1), pages 61-63, January.
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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. More Hours, More Jobs? The Employment Effects of Longer Working Hours
    by maximorossi in NEP-LTV blog on 2012-07-06 13:46:12

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