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How are Hours Worked and Wages Affected by Labor Regulations?: The white-collar exemption and 'name-only managers' in Japan

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  • KURODA Sachiko
  • YAMAMOTO Isamu

Abstract

This paper examines whether overtime regulations have a significant impact on the hours worked and hourly wages, by focusing on so-called name-only managers in Japan. The term name-only manager refers to an employee who has essentially the same job description as other employees, but who is designated by the company as a manager to exempt them from overtime regulations. As the name implies, the only difference between those managers and other employees is in the applicable regulations on working time. Using longitudinal data, our main results from matching estimation indicate no significant difference in hourly wage or hours worked between the two groups. This implies that name-only managers' base salaries are sufficiently higher to compensate for the loss of overtime pay, which supports the fixed-job model.

Suggested Citation

  • KURODA Sachiko & YAMAMOTO Isamu, 2009. "How are Hours Worked and Wages Affected by Labor Regulations?: The white-collar exemption and 'name-only managers' in Japan," Discussion papers 09031, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:09031
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    References listed on IDEAS

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    1. Liberal Economists Are Caught in a Bind Trying to Sell Obama's Overtime Laws
      by Patrick Brennan in The Corner on 2014-04-02 16:45:00

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    Cited by:

    1. Boudreaux, Don & Palagashvili, Liya, 2016. "An Economic Analysis of Overtime Pay Regulations," Working Papers 06869, George Mason University, Mercatus Center.

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    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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