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Uncertainty over Working Schedules and Compensating Wage Differentials: From the viewpoint of labor management

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  • MORIKAWA Masayuki

Abstract

While long working hours have attracted the attention of researchers and policymakers, studies on uncertainty over working schedules have been scarce. Using data from an originally conducted survey, this study presents empirical evidence on working schedule uncertainty in Japan. In terms of results, first, about 50% of workers have experienced unpredictable overtime work, and about 30% are occasionally forced to cancel scheduled holidays due to sudden work issues. The uncertainty over working schedules is prevalent among full-time regular employees and those working long hours. Second, the subjective cost of uncertain working schedules is large, namely, more than 150% of predicted overtime hours for the same amount of unpredictable overtime work. Third, the negative effect of uncertain working schedules on job satisfaction is far greater than that of an increase in the total amount of working hours or wage decrease. Finally, although some wage premium compensation for uncertain working schedules is observed, its size is relatively small.

Suggested Citation

  • MORIKAWA Masayuki, 2018. "Uncertainty over Working Schedules and Compensating Wage Differentials: From the viewpoint of labor management," Discussion papers 18015, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:dpaper:18015
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    File URL: https://www.rieti.go.jp/jp/publications/dp/18e015.pdf
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    References listed on IDEAS

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    1. Mark Wooden & Diana Warren & Robert Drago, 2009. "Working Time Mismatch and Subjective Well‐being," British Journal of Industrial Relations, London School of Economics, vol. 47(1), pages 147-179, March.
    2. Collewet, Marion & Sauermann, Jan, 2017. "Working hours and productivity," Labour Economics, Elsevier, vol. 47(C), pages 96-106.
    3. Tor Eriksson & Nicolai Kristensen, 2014. "Wages or Fringes? Some Evidence on Trade-Offs and Sorting," Journal of Labor Economics, University of Chicago Press, vol. 32(4), pages 899-928.
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    5. Kostiuk, Peter F, 1990. "Compensating Differentials for Shift Work," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 1054-1075, October.
    6. repec:eee:inecon:v:111:y:2018:i:c:p:122-133 is not listed on IDEAS
    7. repec:eti:dpaper:13038 is not listed on IDEAS
    8. Daniel S. Hamermesh & Elena Stancanelli, 2015. "Long Workweeks and Strange Hours," ILR Review, Cornell University, ILR School, vol. 68(5), pages 1007-1018, October.
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    10. John S. Heywood & W. Stanley Siebert & Xiangdong Wei, 2007. "The implicit wage costs of family friendly work practices," Oxford Economic Papers, Oxford University Press, vol. 59(2), pages 275-300, April.
    11. Pouwels, Babette & Siegers, Jacques & Vlasblom, Jan Dirk, 2008. "Income, working hours, and happiness," Economics Letters, Elsevier, vol. 99(1), pages 72-74, April.
    12. HASEBE Takuya & KONISHI Yoshifumi & SHIN Kong Joo & MANAGI Shunsuke, 2018. "White Collar Exemption: Panacea for long work hours and low earnings?," Discussion papers 18002, Research Institute of Economy, Trade and Industry (RIETI).
    13. Nick Bloom & John Van Reenen, 2006. "Management Practices, Work--L ife Balance, and Productivity: A Review of Some Recent Evidence," Oxford Review of Economic Policy, Oxford University Press, vol. 22(4), pages 457-482, Winter.
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