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The Demand for Hours of Labor: Direct Evidence from California

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Author Info
Daniel S. Hamermesh
Stephen J. Trejo

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Abstract

For many years California has required that most women receive time-and-a-half for hours of work beyond 8 in a given day. In 1980 this daily overtime penalty was extended to men. This change provides a unique opportunity to estimate the impact of an exogenous increase in the relative price of a marginal hour of labor on the demand for hours of work. Analyzing Current Population Survey data from 1973 and 1985, we find that the overtime penalty substantially reduced the amount of daily overtime worked by California men compared to men in other states and to women in California. Our estimates imply that the price elasticity of demand for overtime hours is at least -0.70.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5973.

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Date of creation: Mar 1997
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Handle: RePEc:nbr:nberwo:5973

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Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

References listed on IDEAS
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  1. Hunt, Jennifer, 1996. "The Response of Wages and Actual Hours Worked to the Reduction of Standard Hours in Germany," CEPR Discussion Papers 1526, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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(explanations, 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. CYNTHIA BANSAK & Steven Raphael, 1998. "Immigration Reform and the Earnings of Latino Workers: Do Employer Sanctions Cause Discrimination?," University of California at San Diego, Economics Working Paper Series 1998-20, Department of Economics, UC San Diego. [Downloadable!]
  2. Joseph G. Altonji & Jennifer Oldham, 2003. "Vacation laws and annual work hours," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q III, pages 19-29. [Downloadable!]
  3. Juan Carlos Guataquí & Andrés Felipe García Suaza, 2009. "Efectos De La Reforma Laboral: ¿Más Trabajo Y Menos Empleos?," DOCUMENTOS DE TRABAJO 005511, UNIVERSIDAD DEL ROSARIO - FACULTAD DE ECONOMÍA. [Downloadable!]
  4. Daniel S. Hamermesh, 1999. "The Art of Labormetrics," NBER Working Papers 6927, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. C. Bansak & S. Raphael, . "Immigration Reform and the Earnings of Latino Workers: Do Employer Sanctions Cause Discrimination?," Institute for Research on Poverty Discussion Papers 1181-98, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
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  6. Andrew Figura, 2004. "Workweek flexibility and hours variation," Finance and Economics Discussion Series 2004-59, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  7. Donal O'Neill, 2000. "Evaluating Labour Market Interventions," Economics, Finance and Accounting Department Working Paper Series n990300, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth. [Downloadable!]
  8. Shin-Yi Chou & Jin-Tan Liu & Cliff J. Huang, 2004. "Health insurance and savings over the life cycle-a semiparametric smooth coefficient estimation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(3), pages 295-322. [Downloadable!]
  9. Asadul Islam Author-X-Name-Asadul, 2008. "Who Benefits From Microfinance? The Impact Evaluation Of Large Scale Programs In Bangladesh," Monash Economics Working Papers 29/08, Monash University, Department of Economics. [Downloadable!]
  10. Trejo, Stephen, 2001. "Does the Statutory Overtime Premium Discourage Long Workweeks?," IZA Discussion Papers 373, Institute for the Study of Labor (IZA). [Downloadable!]
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  11. Carlos Medina & José Escobar, . "Changes in Daytime Hours of Work and Employment in Colombia," Borradores de Economia 421, Banco de la Republica de Colombia. [Downloadable!]
    Other versions:
  12. Hotchkiss, Julie L. & Moore, Robert E. & Zobay, Stephanie M., 2002. "The impact of the 1996 Summer Olympic Games on employment and wages in Georgia," MPRA Paper 9328, University Library of Munich, Germany. [Downloadable!]
  13. Jay Bhattacharya & Thomas DeLeire & Thomas MaCurdy, 2000. "The California Overtime Experiment: Labor Demand and the Impact of Overtime Regulation on Hours of Work," Working Papers 0024, Harris School of Public Policy Studies, University of Chicago. [Downloadable!]
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