The Cost of Overtime Hours in British Production Industries
Both theoretical and empirical labor market papers that incorporate the workers-hours dichotomy often contain assumptions about shapes of the overtime premium schedules faced by industry. Using cross-section data for British production industries in three years of sharply contrasting economic climates (1981, 1984, and 1988), this paper investigates empirically the appropriate choice of schedule and, therefore, the industrial cost consequences of changing the average number of overtime hours per period. The analysis tackles problems associated with data disaggregation, the proportion of workers working overtime, omitted variables, heteroscedasticity, and intertemporal variation. Copyright 1993 by The London School of Economics and Political Science.
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Volume (Year): 60 (1993)
Issue (Month): 238 (May)
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