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Vacation laws and annual work hours

  • Joseph Altonji
  • Jennifer Oldham

This article reviews the theory and evidence regarding how work hours are determined and the role of employer policies on vacation. The authors discuss possible economic rationales for vacation laws and present empirical evidence on whether they affect annual work hours. The results indicate that vacation laws lead to a substantial reduction in work hours.

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Article provided by Federal Reserve Bank of Chicago in its journal Economic Perspectives.

Volume (Year): (2003)
Issue (Month): Q III ()
Pages: 19-29

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Handle: RePEc:fip:fedhep:y:2003:i:qiii:p:19-29:n:v.27no.3
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  1. Hamermesh, Daniel S, 1999. "The Timing of Work over Time," Economic Journal, Royal Economic Society, vol. 109(452), pages 37-66, January.
  2. Berkovec, James & Stern, Steven, 1991. "Job Exit Behavior of Older Men," Econometrica, Econometric Society, vol. 59(1), pages 189-210, January.
  3. Katharine G. Abraham & James R. Spletzer & Jay C. Stewart, 1998. "Divergent Trends in Alternative Wage Series," NBER Chapters, in: Labor Statistics Measurement Issues, pages 293-325 National Bureau of Economic Research, Inc.
  4. Rosen, Sherwin, 1969. "On the Interindustry Wage and Hours Structure," Journal of Political Economy, University of Chicago Press, vol. 77(2), pages 249-73, March/Apr.
  5. Paxson, Christina H & Sicherman, Nachum, 1996. "The Dynamics of Dual Job Holding and Job Mobility," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 357-93, July.
  6. James B. Rebitzer & Lowell J. Taylor, 1991. "Do Labor Markets Provide Enough Short Hour Jobs? An Analysis of Work Hours and Work Incentives," NBER Working Papers 3883, National Bureau of Economic Research, Inc.
  7. Joseph G. Altonji & Emiko Usui, 2007. "Work Hours, Wages, and Vacation Leave," ILR Review, Cornell University, ILR School, vol. 60(3), pages 408-428, April.
  8. Stewart, Mark B & Swaffield, Joanna K, 1997. "Constraints on the Desired Hours of Work of British Men," Economic Journal, Royal Economic Society, vol. 107(441), pages 520-35, March.
  9. Martinez-Granado, Maite, 2005. "Testing labour supply and hours constraints," Labour Economics, Elsevier, vol. 12(3), pages 321-343, June.
  10. Richard Blundell & Thomas MaCurdy, 1998. "Labour supply: a review of alternative approaches," IFS Working Papers W98/18, Institute for Fiscal Studies.
  11. Alan L. Gustman & Thomas L. Steinmeier, 1981. "Partial Retirement and the Analysis of Retirement Behavior," NBER Working Papers 0763, National Bureau of Economic Research, Inc.
  12. Landers, Renee M & Rebitzer, James B & Taylor, Lowell J, 1996. "Rat Race Redux: Adverse Selection in the Determination of Work Hours in Law Firms," American Economic Review, American Economic Association, vol. 86(3), pages 329-48, June.
  13. repec:oup:qjecon:v:114:y:1999:i:1:p:117-148 is not listed on IDEAS
  14. Daniel S. Hamermesh & Stephen J. Trejo, 1997. "The Demand for Hours of Labor: Direct Evidence from California," NBER Working Papers 5973, National Bureau of Economic Research, Inc.
  15. Cogan, John F, 1981. "Fixed Costs and Labor Supply," Econometrica, Econometric Society, vol. 49(4), pages 945-63, June.
  16. Heim, Bradley T. & Meyer, Bruce D., 2004. "Work costs and nonconvex preferences in the estimation of labor supply models," Journal of Public Economics, Elsevier, vol. 88(11), pages 2323-2338, September.
  17. Gibbons, Robert & Waldman, Michael, 1999. "Careers in organizations: Theory and evidence," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 36, pages 2373-2437 Elsevier.
  18. Moffitt, Robert, 1984. "The Estimation of a Joint Wage-Hours Labor Supply Model," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 550-66, October.
  19. John Haltiwanger & Marilyn E. Manser & Robert Topel, 1998. "Labor Statistics Measurement Issues," NBER Books, National Bureau of Economic Research, Inc, number halt98-1, December.
  20. Senesky, S., 2000. "Testing Whether Intertemporal Labor Supply is Determined Between Jobs," Papers 00-01-15, California Irvine - School of Social Sciences.
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