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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 US, 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.

Suggested Citation

  • Ali Fakih, 2014. "Vacation Leave, Work Hours and Wages: New Evidence from Linked Employer-Employee Data," CIRANO Working Papers 2014s-40, CIRANO.
  • Handle: RePEc:cir:cirwor:2014s-40
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    Cited by:

    1. Ali Fakih, 2018. "What Determines Vacation Leave? The Role Of Gender," Bulletin of Economic Research, Wiley Blackwell, vol. 70(1), pages 1-19, January.
    2. Hofmarcher, Thomas, 2017. "The Effect of Paid Vacation on Health: Evidence from Sweden," Working Papers 2017:13, Lund University, Department of Economics, revised 21 Jun 2020.
    3. Verena Lauber & Sarah Reiter & Johanna Storck, 2015. "Familienfreundlichkeit in Unternehmen - Status Quo in Deutschland und Forschungsstand," DIW Roundup: Politik im Fokus 77, DIW Berlin, German Institute for Economic Research.
    4. Verena Lauber & Johanna Storck, 2016. "Helping with the Kids? How Family-Friendly Workplaces Affect Parental Well-Being and Behavior," Discussion Papers of DIW Berlin 1630, DIW Berlin, German Institute for Economic Research.
    5. 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.
    6. Laszlo Goerke & Sabrina Jeworrek, 2016. "Paid Vacation Use - The Role of Works Councils," IAAEU Discussion Papers 201601, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    7. Verena Lauber & Johanna Storck, 2016. "Helping with the Kids? How Family-Friendly Workplaces Affect Parental Well-Being and Behavior," SOEPpapers on Multidisciplinary Panel Data Research 883, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Hanan Nazier & Racha Ramadan, 2016. "Women's Participation in Labor Market in Egypt: Constraints and Opportunities," Working Papers 999, Economic Research Forum, revised May 2016.
    9. Özgür Demirtaş & Aykut Arslan & Mustafa Karaca, 2019. "Why perceived organizational and supervisory family support is important for organizations? Evidence from the field," Review of Managerial Science, Springer, vol. 13(4), pages 841-869, August.
    10. Ahmed Fayez Abdelgouad, 2016. "Exporting and Workforce Skills-Intensity in the Egyptian Manufacturing Firms: Empirical Evidence Using World Bank Firm-Level Data for Egypt," Working Paper Series in Economics 358, University of Lüneburg, Institute of Economics.
    11. Hayo Bernd & Caris Tobias, 2013. "Female Labour Force Participation in the MENA Region: The Role of Identity," Review of Middle East Economics and Finance, De Gruyter, vol. 9(3), pages 271-292, December.

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    More about this item

    Keywords

    Paid Vacation Leave; Used Vacation Leave; Work Hours; Wages; Linked Employer-Employee Data;
    All these keywords.

    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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