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How Important Is Guaranteed or Institutionalised Overtime?

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Author Info
Bell, David N. F. (University of Stirling)
Hart, Robert A. () (University of Stirling and IZA Bonn)

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Abstract

Basing our empirical work on the British New Earnings Survey Panel Data between 1990 and 1996, we show that overtime hours of male workers contain significant individual effects. We also show that using suitable techniques to deal with the lagged overtime variable serves to alter radically the estimated speed of adjustment of overtime to its desired level. Our results are consistent with firms either guaranteeing the length of weekly overtime or following institutionalised custom and practice in their overtime arrangements. They are far less supportive of traditional demand-side analyses of overtime working.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 766.

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Length: 19 pages
Date of creation: Apr 2003
Date of revision:
Handle: RePEc:iza:izadps:dp766

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Related research
Keywords: overtime hours; individual effects; GMM estimation;

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

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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. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  2. Bils, Mark, 1987. "The Cyclical Behavior of Marginal Cost and Price," American Economic Review, American Economic Association, vol. 77(5), pages 838-55, December. [Downloadable!] (restricted)
  3. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July. [Downloadable!] (restricted)
  4. 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)
  5. Topel, Robert H, 1982. "Inventories, Layoffs, and the Short-Run Demand for Labor," American Economic Review, American Economic Association, vol. 72(4), pages 769-87, September. [Downloadable!] (restricted)
  6. Hart, Robert A & Ruffell, Robin J, 1993. "The Cost of Overtime Hours in British Production Industries," Economica, London School of Economics and Political Science, vol. 60(238), pages 183-201, May. [Downloadable!] (restricted)
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  7. Rosen, Sherwin & Nadiri, M Ishaq, 1974. "A Disequilibrium Model of Demand for Factors of Production," American Economic Review, American Economic Association, vol. 64(2), pages 264-70, May. [Downloadable!] (restricted)
    Other versions:
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This page was last updated on 2009-11-23.

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