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Long‐Term Effects Of Unpaid Overtime

Author

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  • Markus Pannenberg

Abstract

Why do people work unpaid overtime? Using data from the German Socio‐Economic Panel, we show that remarkable long‐term labour earnings gains are associated with unpaid overtime in West Germany. A descriptive analysis suggests that over a 10‐year period workers with unpaid overtime experience on average at least a 10 percentage points higher increase in real labour earnings than their co‐workers. Applying panel data models this result generally holds. Furthermore, we find some evidence for gender specific differences with respect to the effects of unpaid overtime worked. Our results point to the importance of investment in current working hours beyond the standard work week to enhance real earnings prospects.

Suggested Citation

  • Markus Pannenberg, 2005. "Long‐Term Effects Of Unpaid Overtime," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(2), pages 177-193, May.
    • Handle: RePEc:bla:scotjp:v:52:y:2005:i:2:p:177-193
    DOI: 10.1111/j.0036-9292.2005.00340.x
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    Cited by:

    1. Ulrike Famira-Mühlberger & Stefan Fuchs, 2013. "Unbezahlte Überstunden in Österreich," WIFO Studies, WIFO, number 46936.
    2. Hübler, Olaf, 2003. "Geschlechtsspezifische Lohnunterschiede (Gender-specific wage differentials)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(4), pages 539-559.
    3. Angelina Keil & Thomas Leoni & Konrad Wolfgang Kallus & Kerstin Gaisbachgrabner, 2011. "Folgekosten langer Arbeitszeiten. Kommentierter Literaturüberblick," WIFO Studies, WIFO, number 42411, October.
    4. Simon Fietze & Elke Holst & Verena Tobsch, 2011. "Germany’s Next Top Manager: Does Personality Explain the Gender Career Gap?," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 22(3), pages 240-273.
    5. Hübler, Olaf, 2003. "Geschlechtsspezifische Lohnunterschiede (Gender-specific wage differentials)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(4), pages 539-559.
    6. Markus Pannenberg & Martin Spieß, 2007. "GEE Estimation of a Two-Equation Panel Data Model: An Analysis of Wage Dynamics and the Incidence of Profit-Sharing in West Germany," Discussion Papers of DIW Berlin 663, DIW Berlin, German Institute for Economic Research.
    7. Thomas Cornelissen & John Heywood & Uwe Jirjahn, 2014. "Reciprocity and Profit Sharing: Is There an Inverse U-shaped Relationship?," Journal of Labor Research, Springer, vol. 35(2), pages 205-225, June.
    8. repec:hum:wpaper:sfb649dp2005-032 is not listed on IDEAS
    9. Burdin, Gabriel & Kambayashi, Ryo & Kato, Takao, 2024. "The Impact of Overtime Limits on Firms and Workers: Evidence from Japan's Work Style Reform," IZA Discussion Papers 17583, Institute of Labor Economics (IZA).
    10. Anger, Silke, 2005. "Working time as an investment? The effects of unpaid overtime on wages, promotions and layoffs," SFB 649 Discussion Papers 2005-032, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    11. Rafael Gralla & Kornelius Kraft & Stanislav Volgushev, 2017. "The effects of works councils on overtime hours," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(2), pages 143-168, May.
    12. Alexis Ioannides & Eleni Oxouzi & Stavros Mavroudeas, 2014. "All work and no … pay? Unpaid overtime in Greece: determining factors and theoretical explanations," Industrial Relations Journal, Wiley Blackwell, vol. 45(1), pages 39-55, January.

    More about this item

    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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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