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More Hours, More Jobs? The Employment Effects of Longer Working Hours

Author

Listed:
  • Andrews, Martyn J.

    () (University of Manchester)

  • Gerner, Hans-Dieter

    () (Institute for Employment Research (IAB), Nuremberg)

  • Schank, Thorsten

    () (University of Mainz)

  • Upward, Richard

    () (University of Nottingham)

Abstract

Increases in standard hours have been a contentious policy issue in Germany. Whilst this might directly lead to a substitution of workers by hours, there may also be a positive employment effect due to reduced costs. Moreover, the response of firms differs between firms which offer overtime and those which do not. For a panel of German plants (2001-2006), we analyse the effect of increased standard hours on employment. Using difference-in-difference methods we find that, consistent with theory, overtime plants showed a significant positive employment response, whilst for standard-time plants there is no difference at all between plants which increased standard hours and those which did not.

Suggested Citation

  • Andrews, Martyn J. & Gerner, Hans-Dieter & Schank, Thorsten & Upward, Richard, 2012. "More Hours, More Jobs? The Employment Effects of Longer Working Hours," IZA Discussion Papers 6652, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp6652
    as

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    References listed on IDEAS

    as
    1. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, number 9780521468398.
    2. Andrews, M J & Simmons, R, 2001. "Friday May Never Be the Same Again: Some Results on Work-Sharing from Union-Firm Bargaining Models," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(5), pages 488-516, November.
    3. Raposo, Pedro S. & van Ours, Jan C., 2010. "How working time reduction affects jobs and wages," Economics Letters, Elsevier, vol. 106(1), pages 61-63, January.
    4. Mikal Skuterud, 2007. "Identifying the Potential of Work-Sharing as a Job-Creation Strategy," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 265-287.
    5. Giancarlo Corsetti & Michael P. Devereux & Luigi Guiso & John Hassler & Gilles Saint-Paul & Hans-Werner Sinn & Jan-Egbert Sturm & Xavier Vives, 2010. "EEAG Report on the European Economy 2010," EEAG Report on the European Economy, CESifo Group Munich, vol. 0, pages 1-140, February.
    Full references (including those not matched with items on IDEAS)

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. More Hours, More Jobs? The Employment Effects of Longer Working Hours
      by maximorossi in NEP-LTV blog on 2012-07-06 18:46:12

    Citations

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    Cited by:

    1. Pedro S. Martins, 2016. "Can overtime premium flexibility promote employment? Firm- and worker-level evidence from a labour law reform," Working Papers 72, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    2. Thorsten Schank, 2015. "Employment effects of longer working hours," IZA World of Labor, Institute for the Study of Labor (IZA), pages 216-216, December.
    3. Martins, Pedro S., 2017. "Economic effects of overtime premium flexibility: Firm- and worker-level evidence from a law reform," GLO Discussion Paper Series 102, Global Labor Organization (GLO).

    More about this item

    Keywords

    plant-level data; employment; working time; difference-in-differences;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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