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Hours of Work and the Fair Labor Standards Act: A Study of Retail and Wholesale Trade, 1938–1950

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  • Dora L. Costa

Abstract

When the Fair Labor Standards Act was first implemented, a 5% reduction in the length of the standard workweek reduced by at least 18% the proportion of men and women working more than 40 hours per week. This analysis, based on monthly time series data from 1935–41 BLS surveys and individual-level data from the 1940 and 1950 censuses, shows that the Act's impact was larger in the South, where the proportion of men and women working over 40 hours fell by 23% and 43%, respectively, than in the North. Because of much lower pre-Act wages in the South than in the North, the minimum wage provisions of the Act were much more binding in the South southern employers were less able than northern employers to adjust straight-time wages in response to the Act's overtime provisions.

Suggested Citation

  • Dora L. Costa, 2000. "Hours of Work and the Fair Labor Standards Act: A Study of Retail and Wholesale Trade, 1938–1950," ILR Review, Cornell University, ILR School, vol. 53(4), pages 648-664, July.
    • Handle: RePEc:sae:ilrrev:v:53:y:2000:i:4:p:648-664
    DOI: 10.1177/001979390005300405
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Pierre Cahuc & Stéphane Carcillo, 2014. "The Detaxation of Overtime Hours: Lessons from the French Experiment," Journal of Labor Economics, University of Chicago Press, vol. 32(2), pages 361-400.
    2. Takuya HASEBE & Yoshifumi KONISHI & Kong Joo SHIN & Shunsuke MANAGI, 2018. "White Collar Exemption: Panacea for long work hours and low earnings?," Discussion papers 18002, Research Institute of Economy, Trade and Industry (RIETI).
    3. Lee Jieun, 2022. "Effects of a national work hours restriction in a high hours country," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-18, January.
    4. Daniel S. Hamermesh, 2021. "Do labor costs affect companies’ demand for labor?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-3, February.
    5. repec:hal:spmain:info:hdl:2441/1aeo7h7o569ilqjt5db064dfm3 is not listed on IDEAS
    6. Hamermesh, Daniel, 2008. "Fun with matched firm-employee data: Progress and road maps," Labour Economics, Elsevier, vol. 15(4), pages 662-672, August.
    7. Pierre Cahuc & Stéphane Carcillo, 2014. "The Detaxation of Overtime Hours: Lessons from the French Experiment," SciencePo Working papers hal-03460334, HAL.
    8. Joel A. Elvery & C. Lockwood Reynolds & Shawn M. Rohlin, 2023. "Employer Wage Subsidy Caps and Part-Time Work," ILR Review, Cornell University, ILR School, vol. 76(1), pages 189-209, January.
    9. Stephen J. Trejo, 2003. "Does the Statutory Overtime Premium Discourage Long Workweeks?," ILR Review, Cornell University, ILR School, vol. 56(3), pages 530-551, April.
    10. John H. Johnson IV, 2003. "The Impact of Federal Overtime Legislation on Public Sector Labor Markets," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 43-69, January.
    11. Stephen J. Trejo, 2003. "Does the Statutory Overtime Premium Discourage Long Workweeks?," ILR Review, Cornell University, ILR School, vol. 56(3), pages 530-551, April.
    12. Quach, Simon, 2020. "The Labor Market Effects of Expanding Overtime Coverage," MPRA Paper 100613, University Library of Munich, Germany.
    13. Carlos Medina D. & Jos� Escobar R., 2007. "The Effects of Changes in the Legal Work Shift on Wages and Hours Worked in Colombia," Coyuntura Social 12866, Fedesarrollo.
    14. Camille LOGEAY & Sven SCHREIBER, 2010. "Evaluating the Effectiveness of the French Work-Sharing Reform," EcoMod2004 330600093, EcoMod.
    15. Leonard Goff, 2022. "Treatment Effects in Bunching Designs: The Impact of Mandatory Overtime Pay on Hours," Papers 2205.10310, arXiv.org, revised Jun 2024.
    16. repec:spo:wpmain:info:hdl:2441/1aeo7h7o569ilqjt5db064dfm3 is not listed on IDEAS

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