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Vacation Leave, Work Hours And Wages: New Evidence From Linked Employer-Employee Data

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  • Ali Fakih

Abstract

This paper provides new evidence on the determinants of vacation leave and its relationship to hours worked and hourly wages by examining the case of Canada. Previous studies from the USA, using individual-level data, have revealed that annual work hours fall by around 53 hours for each additional week of vacation used. Exploiting a linked employer–employee dataset that allows to control for detailed observed demographic, job, and firm characteristics, we find instead that annual hours of work fall by only 29 hours for each additional week of vacation used. Our findings support the hypothesis that pressure at work may lead employees to use more vacation days but also causes them to work for longer hours.
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Suggested Citation

  • Ali Fakih, 2014. "Vacation Leave, Work Hours And Wages: New Evidence From Linked Employer-Employee Data," CIRANO Papers 2014n-11a, CIRANO.
    • Handle: RePEc:cir:circah:2014n-11a
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    File URL: https://cirano.qc.ca/files/publications/2014N-11a.pdf
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    Cited by:

    1. Jianwei Deng & Yuangeng Guo & Hubin Shi & Yongchuang Gao & Xuan Jin & Yexin Liu & Tianan Yang, 2020. "Effect of Discrimination on Presenteeism among Aging Workers in the United States: Moderated Mediation Effect of Positive and Negative Affect," IJERPH, MDPI, vol. 17(4), pages 1-19, February.
    2. Thomas Hofmarcher, 2021. "The effect of paid vacation on health: evidence from Sweden," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(3), pages 929-967, July.
    3. 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.
    4. Ali Fakih, 2018. "What Determines Vacation Leave? The Role Of Gender," Bulletin of Economic Research, Wiley Blackwell, vol. 70(1), pages 1-19, January.
    5. Marco Clemens & Laszlo Goerke, 2025. "Trade Union Membership and Bonus Payments: German Survey Evidence," IAAEU Discussion Papers 202503, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    6. Laszlo Goerke & Sabrina Jeworrek, 2021. "Paid vacation use: The role of works councils," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 42(3), pages 473-503, August.
    7. Ana I. Moro Egido & Joaquin Naval & Jose I. Silva, 2023. "Part-time hours and wages," ThE Papers 23/06, Department of Economic Theory and Economic History of the University of Granada..
    8. Laszlo Goerke & Sabrina Jeworrek & Markus Pannenberg, 2015. "Trade union membership and paid vacation in Germany," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-26, December.

    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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