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Paid Annual Leave and Working Hours

Author

Listed:
  • Mark Wooden

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Diana Warren

    (Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

Using data from wave 5 of the Household, Income and Labour Dynamics in Australia (HILDA) Survey, this study examines: (i) the extent to which Australian employees use their annual leave entitlements; and (ii) the association between annual leave taking and weekly hours of work. After restricting attention to employees likely to have entitlement to at least four weeks of paid annual leave, it is found that the mean number of days of leave taken per year is around 16 and that the majority (63%) take less than 20. The incidence of annual leave taking is found to vary positively correlated with the number of usual weekly hours of work, but the size of this effect is small and weak. It is concluded that persons who regularly report long hours of work each week are mostly not compensating by taking extended periods of leave each year, but neither is there evidence to support the hypothesis that the pressures at work that might lead many people to regularly work very long hours each week also cause them to forego their annual leave entitlements.

Suggested Citation

  • Mark Wooden & Diana Warren, 2007. "Paid Annual Leave and Working Hours," Melbourne Institute Working Paper Series wp2007n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2007n20
    as

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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2007n20.pdf
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    References listed on IDEAS

    as
    1. E. Paul Durrenberger, 2005. "Labour," Chapters, in: James G. Carrier (ed.), A Handbook of Economic Anthropology, chapter 8, Edward Elgar Publishing.
    2. Mark Wooden & Nicole Watson, 2007. "The HILDA Survey and its Contribution to Economic and Social Research (So Far)," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 208-231, June.
    3. Joseph G. Altonji & Emiko Usui, 2007. "Work Hours, Wages, and Vacation Leave," ILR Review, Cornell University, ILR School, vol. 60(3), pages 408-428, April.
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    Cited by:

    1. Varvarigos, Dimitrios, 2011. "Non-monotonic welfare dynamics in a growing economy," Journal of Macroeconomics, Elsevier, vol. 33(2), pages 303-312, June.
    2. Ali Fakih, 2014. "Vacation Leave, Work Hours, and Wages: New Evidence from Linked Employer–Employee Data," LABOUR, CEIS, vol. 28(4), pages 376-398, December.
    3. 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.

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