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More hours, more jobs? The employment effects of longer working hours

Author

Listed:
  • Martyn Andrews
  • Hans-Dieter Gerner
  • Thorsten Schank
  • Richard Upward

Abstract

Increases in standard hours of work have been a contentious policy issue in Germany. Whilst this might directly lead to a substitution of workers by hours, there may also be a positive employment effect due to reduced costs. Moreover, the response of firms may differ between firms that offer overtime and those that do not. For a panel of German plants (2001–2006) drawn from the IAB Establishment Panel, we are the first to analyse the effect of increased standard hours on employment. Using difference-in-difference methods we find that, consistent with theory, overtime plants showed a significant positive employment response, whilst for standard-time plants there is no difference between plants that increased standard hours and those that did not. There is clear evidence of wage concession in all treated plants.

Suggested Citation

  • Martyn Andrews & Hans-Dieter Gerner & Thorsten Schank & Richard Upward, 2015. "More hours, more jobs? The employment effects of longer working hours," Oxford Economic Papers, Oxford University Press, vol. 67(2), pages 245-268.
    • Handle: RePEc:oup:oxecpp:v:67:y:2015:i:2:p:245-268.
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    File URL: http://hdl.handle.net/10.1093/oep/gpu026
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. More Hours, More Jobs? The Employment Effects of Longer Working Hours
      by maximorossi in NEP-LTV blog on 2012-07-06 18:46:12

    Citations

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    Cited by:

    1. Ísis F. Lira & Laura de Carvalho Schiavon & Ricardo da Silva Freguglia, 2024. "Electronic monitoring of working time and labour market outcomes: Evidence from Brazil," Industrial Relations Journal, Wiley Blackwell, vol. 55(3), pages 205-221, May.
    2. Stéphane Carcillo & Alexander Hijzen & Stefan Thewissen, 2024. "The limitations of overtime limits to reduce long working hours: Evidence from the 2018 to 2021 working time reform in Korea," British Journal of Industrial Relations, London School of Economics, vol. 62(1), pages 98-126, March.
    3. Thorsten Schank, 2015. "Employment effects of longer working hours," IZA World of Labor, Institute of Labor Economics (IZA), pages 216-216, December.
    4. Martins, Pedro S., 2016. "Can Overtime Premium Flexibility Promote Employment? Firm- and Worker-Level Evidence from a Labour Law Reform," IZA Discussion Papers 10205, Institute of Labor Economics (IZA).
    5. Martins, Pedro S., 2017. "Economic effects of overtime premium flexibility: Firm- and worker-level evidence from a law reform," GLO Discussion Paper Series 102, Global Labor Organization (GLO).

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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