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The Demand for Hours of Labor: Direct Evidence from California

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  • Daniel S. Hamermesh
  • Stephen J. Trejo

Abstract

California's longstanding requirement that most women receive time-and-a-half pay for workhours beyond eight in one day was extended to men in 1980. Analyzing Current Population Survey data from 1973, 1985, and 1991, we find that this overtime penalty substantially reduced the amount of daily overtime worked by California men relative to men in other states. Comparisons that use women to control for California-specific shocks show even stronger effects. The estimates imply a price elasticity of demand for overtime hours of at least -0.5. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Suggested Citation

  • Daniel S. Hamermesh & Stephen J. Trejo, 2000. "The Demand for Hours of Labor: Direct Evidence from California," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 38-47, February.
  • Handle: RePEc:tpr:restat:v:82:y:2000:i:1:p:38-47
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    References listed on IDEAS

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    1. Jennifer Hunt, 1996. "The Response of Wages and Actual Hours Worked to the Reduction of Standard Hours in Germany," Discussion Papers of DIW Berlin 138, DIW Berlin, German Institute for Economic Research.
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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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