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Overtime Work as a Signaling Device

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  • Anger, Silke

Abstract

This paper provides an explanation for the empirically proven relationship between overtime and future benefits. We suggest an internal signaling model, in which a worker signals his value to the employer by supplying unpaid overtime. In our empirical analysis, we examine whether overtime has in fact a signaling component. Variations in collectively bargained hours between industries are exploited, as they imply different overtime thresholds for workers with the same number of actual hours. Using data from the German Socio-Economic Panel Study for the years 1993–2004, a positive signaling value of unpaid overtime is found for West German workers.

Suggested Citation

  • Anger, Silke, 2008. "Overtime Work as a Signaling Device," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55(2), pages 167-189.
    • Handle: RePEc:zbw:espost:68492
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Zapf, Ines, 2015. "Individual and workplace-specific determinants of paid and unpaid overtime work in Germany," IAB-Discussion Paper 201515, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Carr, Michael D., 2011. "Work hours and wage inequality: Evidence from the 2004 WERS," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(4), pages 417-427, August.
    3. Mario Bossler & Philipp Grunau, 2020. "Asymmetric information in external versus internal promotions," Empirical Economics, Springer, vol. 59(6), pages 2977-2998, December.
    4. Frei, Irina & Grund, Christian, 2017. "Antecedents of Overtime Work: The Case of Junior Academics," IZA Discussion Papers 11065, Institute of Labor Economics (IZA).
    5. P. Givord & L. Wilner, 2009. "Short-term contracts: trap or stepping stone toward stable employment?," Documents de Travail de l'Insee - INSEE Working Papers g2009-04, Institut National de la Statistique et des Etudes Economiques.
    6. Hamilton, Odessa S. & Jolles, Daniel & Lordan, Grace, 2023. "Does the Tendency for 'Quiet Quitting' Differ across Generations? Evidence from the UK," IZA Discussion Papers 16240, Institute of Labor Economics (IZA).
    7. Daniel Possenriede & Wolter Hassink & Janneke Plantenga, 2014. "Does face-time affect your career?," Working Papers 14-10, Utrecht School of Economics.
    8. Natalia Emanuel & Emma Harrington, 2023. "Working Remotely? Selection, Treatment, and the Market for Remote Work," Staff Reports 1061, Federal Reserve Bank of New York.
    9. Lea Heursen & Svenja Friess & Marina Chugunova, 2023. "Reputational Concerns and Advice-Seeking at Work," Rationality and Competition Discussion Paper Series 447, CRC TRR 190 Rationality and Competition.
    10. Tekin Akgeyik, 2021. "Fazla Çalışmanın İşyükü ve İşgücü Belirleyicileri(Bir Şirketin Veri Seti Üzerine Ampirik Bir Araştırma)," Journal of Social Policy Conferences, Istanbul University, Faculty of Economics, vol. 0(80), pages 37-65, June.
    11. Gustavsson, Magnus, 2013. "Permanent versus transitory wage differentials and the inequality-hours hypothesis," Economics Letters, Elsevier, vol. 121(3), pages 537-541.
    12. Argyro Avgoustaki & Hans T. W. Frankort, 2019. "Implications of Work Effort and Discretion for Employee Well-Being and Career-Related Outcomes: An Integrative Assessment," ILR Review, Cornell University, ILR School, vol. 72(3), pages 636-661, May.
    13. Argyro Avgoustaki & Hans T. W. Frankort, 2023. "All work intensity is not created equal: Effort motives, job satisfaction and quit intentions at a grocery chain," British Journal of Industrial Relations, London School of Economics, vol. 61(4), pages 869-894, December.
    14. Thomas Cornelissen & John Heywood & Uwe Jirjahn, 2014. "Reciprocity and Profit Sharing: Is There an Inverse U-shaped Relationship?," Journal of Labor Research, Springer, vol. 35(2), pages 205-225, June.
    15. Christian Pfeifer, 2015. "Effective working hours and wages: the case of downward adjustment via paid absenteeism," Economics Bulletin, AccessEcon, vol. 35(1), pages 612-626.
    16. Argyro Avgoustaki & Almudena Cañibano, 2020. "Motivational Drivers of Extensive Work Effort: Are Long Hours Always Detrimental to Well‐being?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(3), pages 355-398, July.
    17. Mevlut Tatliyer & Nurullah Gur, 2022. "Individualism and Working Hours: Macro-Level Evidence," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 159(2), pages 733-755, January.
    18. Elisabetta Magnani, 2012. "Older Workers' Training Opportunities in Times of Workplace Innovation," Working Papers 201205, ARC Centre of Excellence in Population Ageing Research (CEPAR), Australian School of Business, University of New South Wales.
    19. Alexis Ioannides & Eleni Oxouzi & Stavros Mavroudeas, 2014. "All work and no … pay? Unpaid overtime in Greece: determining factors and theoretical explanations," Industrial Relations Journal, Wiley Blackwell, vol. 45(1), pages 39-55, January.
    20. Zapf, Ines & Weber, Enzo, 2017. "The role of employer, job and employee characteristics for flexible working time : An empirical analysis of overtime work and flexible working hours' arrangements," IAB-Discussion Paper 201704, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    21. Arash Nekoei, 2022. "Will Markets Provide Humane Jobs? A Hypothesis," CESifo Working Paper Series 9533, CESifo.
    22. Ines Zapf, 2015. "Individual and Workplace-Specific Determinants of Paid and Unpaid Overtime Work in Germany," SOEPpapers on Multidisciplinary Panel Data Research 771, DIW Berlin, The German Socio-Economic Panel (SOEP).
    23. Rafael Gralla & Kornelius Kraft & Stanislav Volgushev, 2017. "The effects of works councils on overtime hours," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(2), pages 143-168, May.
    24. Jorge González Chapela, 2015. "Split or straight? Evidence of the effects of work schedules on workers’ well-being, time use, and productivity," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 6(2), pages 153-177, June.
    25. Natalia Montinari, 2010. "Reciprocity in Teams: a Behavioral Explanation for Unpaid Overtime," "Marco Fanno" Working Papers 0114, Dipartimento di Scienze Economiche "Marco Fanno".

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    More about this item

    Keywords

    Unpaid Overtime; Internal Signaling; Asymmetric Information;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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