IDEAS home Printed from https://ideas.repec.org/p/kei/dpaper/2009-008.html
   My bibliography  Save this paper

How are hours worked and wages affected by labor regulations?: The white-collar exemption and 'name-only managers' in Japan

Author

Listed:
  • Sachiko Kuroda

    (The University of Tokyo)

  • Isamu Yamamoto

    (Keio University)

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

  • Sachiko Kuroda & Isamu Yamamoto, 2009. "How are hours worked and wages affected by labor regulations?: The white-collar exemption and 'name-only managers' in Japan," Keio/Kyoto Joint Global COE Discussion Paper Series 2009-008, Keio/Kyoto Joint Global COE Program.
    • Handle: RePEc:kei:dpaper:2009-008
    as

    Download full text from publisher

    File URL: https://ies.keio.ac.jp/old_project/old/gcoe-econbus/pdf/dp/DP2009-008.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. OWAN Hideo & NAGAOKA Sadao, 2011. "Intrinsic and Extrinsic Motivations of Inventors," Discussion papers 11022, Research Institute of Economy, Trade and Industry (RIETI).
    2. Henry Sauermann & Wesley M. Cohen, 2008. "What Makes Them Tick? Employee Motives and Firm Innovation," NBER Working Papers 14443, National Bureau of Economic Research, Inc.
    3. Stephen J. Trejo, 2003. "Does the Statutory Overtime Premium Discourage Long Workweeks?," ILR Review, Cornell University, ILR School, vol. 56(3), pages 530-551, April.
    4. Sadao Nagaoka, 2005. "Determinants of the Introduction of Stock Options by Japanese Firms: Analysis from the Incentive and Selection Perspectives," The Journal of Business, University of Chicago Press, vol. 78(6), pages 2289-2316, November.
    5. Trejo, Stephen J, 1991. "The Effects of Overtime Pay Regulation on Worker Compensation," American Economic Review, American Economic Association, vol. 81(4), pages 719-740, September.
    6. Giuri, Paola & Mariani, Myriam & Brusoni, Stefano & Crespi, Gustavo & Francoz, Dominique & Gambardella, Alfonso & Garcia-Fontes, Walter & Geuna, Aldo & Gonzales, Raul & Harhoff, Dietmar & Hoisl, Karin, 2007. "Inventors and invention processes in Europe: Results from the PatVal-EU survey," Research Policy, Elsevier, vol. 36(8), pages 1107-1127, October.
    7. Paola Criscuolo, 2006. "The 'home advantage' effect and patent families. A comparison of OECD triadic patents, the USPTO and the EPO," Scientometrics, Springer;Akadémiai Kiadó, vol. 66(1), pages 23-41, January.
    8. Daniel S. Hamermesh & Stephen J. Trejo, 2000. "The Demand for Hours of Labor: Direct Evidence from California," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 38-47, February.
    9. NAGAOKA Sadao & John P. WALSH, 2009. "Commercialization and Other Uses of Patents in Japan and the U.S.: Major findings from the RIETI-Georgia Tech inventor survey," Discussion papers 09011, Research Institute of Economy, Trade and Industry (RIETI).
    10. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
    11. David N. F. Bell & Robert A. Hart, 2003. "Wages, Hours, and Overtime Premia: Evidence from the British Labor Market," ILR Review, Cornell University, ILR School, vol. 56(3), pages 470-480, April.
    12. Hélène Dernis & Mosahid Khan, 2004. "Triadic Patent Families Methodology," OECD Science, Technology and Industry Working Papers 2004/2, OECD Publishing.
    13. Trejo, Stephen J, 1993. "Overtime Pay, Overtime Hours, and Labor Unions," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 253-278, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    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

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

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

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John P. WALSH & NAGAOKA Sadao, 2009. "Who Invents?: Evidence from the Japan-U.S. inventor survey," Discussion papers 09034, Research Institute of Economy, Trade and Industry (RIETI).
    2. Kuroda, Sachiko & Yamamoto, Isamu, 2012. "Impact of overtime regulations on wages and work hours," Journal of the Japanese and International Economies, Elsevier, vol. 26(2), pages 249-262.
    3. 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).
    4. Takahashi Katsuhide & Urata Shujiro, 2010. "On the Use of FTAs by Japanese Firms: Further Evidence," Business and Politics, De Gruyter, vol. 12(1), pages 1-17, April.
    5. Riffat Bhutto, 2015. "Extended Work Overtime: Labors (Employees) Choice or Obligation," South Asian Journal of Management Sciences (SAJMS), Iqra University, Iqra University, vol. 9(2), pages 63-68, Fall.
    6. Kawaguchi, Daiji & Naito, Hisahiro & Yokoyama, Izumi, 2017. "Assessing the effects of reducing standard hours: Regression discontinuity evidence from Japan," Journal of the Japanese and International Economies, Elsevier, vol. 43(C), pages 59-76.
    7. Hart, Robert A. & Ma, Yue, 2010. "Wage-hours contracts, overtime working and premium pay," Labour Economics, Elsevier, vol. 17(1), pages 170-179, January.
    8. Christine Jolls, 2007. "Employment Law and the Labor Market," NBER Working Papers 13230, National Bureau of Economic Research, Inc.
    9. repec:aia:aiaswp:wp22 is not listed on IDEAS
    10. Quach, Simon, 2020. "The Labor Market Effects of Expanding Overtime Coverage," MPRA Paper 100613, University Library of Munich, Germany.
    11. Dirk Czarnitzki & Katrin Hussinger & Bart Leten, 2020. "How Valuable are Patent Blocking Strategies?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(3), pages 409-434, May.
    12. Boudreaux, Don & Palagashvili, Liya, 2016. "An Economic Analysis of Overtime Pay Regulations," Working Papers 06869, George Mason University, Mercatus Center.
    13. Alexis Ioannides & Eleni Oxouzi & Stavros Mavroudeas, 2014. "All work and no … pay? Unpaid overtime in Greece: determining factors and theoretical explanations," Industrial Relations Journal, Wiley Blackwell, vol. 45(1), pages 39-55, January.
    14. Daniel S. Hamermesh, 2002. "12 Million Salaried Workers are Missing," ILR Review, Cornell University, ILR School, vol. 55(4), pages 649-666, July.
    15. Kawaguchi, Daiji & Lee, Jungmin & Hamermesh, Daniel S., 2013. "A gift of time," Labour Economics, Elsevier, vol. 24(C), pages 205-216.
    16. Martins, Pedro S., 2016. "Can Overtime Premium Flexibility Promote Employment? Firm- and Worker-Level Evidence from a Labour Law Reform," IZA Discussion Papers 10205, Institute of Labor Economics (IZA).
    17. Carlos Medina D. & José Escobar R., 2007. "The Effects of Changes in the Legal Work Shift on Wages and Hours Worked in Colombia," Coyuntura Social 12866, Fedesarrollo.
    18. King, Stephen P., 1997. "Oligopoly and overtime," Labour Economics, Elsevier, vol. 4(2), pages 149-165, June.
    19. 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).
    20. Ronald L. Oaxaca & Galiya Sagyndykova, 2020. "The effect of overtime regulations on employment," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-89, December.
    21. Ronald DeBeaumont & Larry D. Singell, 1999. "The Return to Hours and Workers in U.S. Manufacturing: Evidence on Aggregation Bias," Southern Economic Journal, John Wiley & Sons, vol. 66(2), pages 336-352, October.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kei:dpaper:2009-008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Global COE Program Office (email available below). General contact details of provider: https://edirc.repec.org/data/iekeijp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.