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The role of work schedules and the macroeconomy on labor effort

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  • Senney, Garrett T.
  • Dunn, Lucia F.

Abstract

We investigate determinants of work effort using novel data from compressed air powered machinery in a large automotive plant. Work effort decreases monotonically across shifts, as industry-standard shift differentials do not fully compensate for the disutility of irregular shift times. Workers reduce their effective labor supply by exerting less effort rather than resorting to separation/renegotiation. Additionally, workers are found to respond to declining macroeconomic conditions by increasing work effort, presumably to avoid plant closure/layoff. Further support for this is seen by examining shift interactions with economic conditions which show the strongest effort effects for third, then second shift workers, in line with layoff risks.

Suggested Citation

  • Senney, Garrett T. & Dunn, Lucia F., 2019. "The role of work schedules and the macroeconomy on labor effort," Labour Economics, Elsevier, vol. 57(C), pages 23-34.
  • Handle: RePEc:eee:labeco:v:57:y:2019:i:c:p:23-34
    DOI: 10.1016/j.labeco.2019.01.003
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    References listed on IDEAS

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    Cited by:

    1. Dossche, Maarten & Gazzani, Andrea Giovanni & Lewis, Vivien J., 2021. "Labor adjustment and productivity in the OECD," CEPR Discussion Papers 16202, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    Work effort; Shift differentials; Labor market equilibrium; Macroeconomic conditions;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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