Is there a wage premium or wage discount for flexible hours?
AbstractWith flexible work time arrangements firms can quickly adjust to demand fluctuations, while employees may benefit from more time sovereignty. Depending on the specific type of arrangement the accompanying wage effects are ambiguous and have rarely been analyzed. According to the theory of compensating wage differentials, workers with more time sovereignty may be willing to forego earnings whereas others need to be compensated by higher earnings. We analyze the wage effects of work time accounts using GSOEP data from 2002. We compare wages of employees with and without work time accounts by propensity score matching. Our results indicate that work time accountees receive higher wages on average, thus suggesting an employer's discretion to determine the timing of flexible work hours, but with remarkable differences across sectors. --
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Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 04-83.
Date of creation: 2004
Date of revision:
work time flexibility; propensity score matching; compensating wage differentials;
Find related papers by JEL classification:
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
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- Michael Beckmann & Istvàn Hegedüs, 2011. "Trust-Based Working Time and Organizational Performance: Evidence from German Establishment-Level Panel Data," Working papers 2011/13, Faculty of Business and Economics - University of Basel.
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