Overtime Hours in Great Britain over the Period 1975-1999: A Panel Data Analysis
Around 40% of the male workforce regularly works 8 to 9 hours a week of paid overtime. This paper investigates the determinants of overtime hours in Britain over the period 1975-1999. For this purpose a panel data Tobit model is estimated using the very large panel of employees from the National Earnings Survey Panel Dataset. The empirical results show that changes in the job-mix across the economy, from high to low overtime jobs rather than within-job changes in the use of overtime, account for most of the apparent decline in the extent of overtime working over the 1990s. Within jobs, the GDP cycle has a significant impact on overtime work, while labour market conditions, represented by the unemployment rate, do not. The elasticity of total working hours with respect to wages is found to be close to zero and with respect to contractual hours close to unity. Furthermore the results show that the decline of unionisation has not altered the use of overtime.
|Date of creation:||May 2000|
|Date of revision:|
|Publication status:||published in: Journal of the Royal Statistical Society, Series A (Statistics in Society), 2005, 168 (1), 207-231|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kalwij, A.S., 2000.
"A Maximum Likelihood Estimator based on First Differences for a Panel Data Tobit Model with Individual Specific Effects,"
2000-28, Tilburg University, Center for Economic Research.
- Kalwij, Adriaan S., 2003. "A maximum likelihood estimator based on first differences for a panel data Tobit model with individual specific effects," Economics Letters, Elsevier, vol. 81(2), pages 165-172, November.
- Trejo, Stephen J, 1991. "The Effects of Overtime Pay Regulation on Worker Compensation," American Economic Review, American Economic Association, vol. 81(4), pages 719-40, September.
- Calmfors, Lars & Hoel, Michael, 1988. " Work Sharing and Overtime," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(1), pages 45-62.
- Trejo, Stephen J, 1993. "Overtime Pay, Overtime Hours, and Labor Unions," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 253-78, April.
- Millard, Stephen & Scott, Andrew & Sensier, Marianne, 1997.
"The Labour Market over the Business Cycle: Can Theory Fit the Facts?,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 13(3), pages 70-92, Autumn.
- S Millard & Andrew Scott & M Sensier, 1997. "The Labour Market over the Business Cycle: Can Theory Fit the Facts?," CEP Discussion Papers dp0364, Centre for Economic Performance, LSE.
- Bauer, Thomas & Zimmermann, Klaus F, 1999.
"Overtime Work and Overtime Compensation in Germany,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 46(4), pages 419-36, September.
- Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Overtime Work and Overtime Compensation in Germany," IZA Discussion Papers 48, Institute for the Study of Labor (IZA).
- Bell, David N.F. & Hart, Robert A., 1999.
"Overtime Working in an Unregulated Labour Market,"
IZA Discussion Papers
44, Institute for the Study of Labor (IZA).
- David N F Bell & Robert A Hart, 1995. "Working Time in Great Britain, 1975-1990," Working Papers Series 95/9, University of Stirling, Division of Economics.
- Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp153. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.