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Effective Working Hours and Wages: The Case of Downward Adjustment via Paid Absenteeism

Author

Listed:
  • Christian Pfeifer

    (Institute of Economics, Leuphana University of Lüneburg, Germany)

Abstract

This paper compares contractual with effective working hours and wages, respectively. Effective working hours are defined as contractual working hours minus absent working hours. This approach takes into account workers' downward adjustment of working time via paid absenteeism if working time constraints are present, which induce workers to accept contracts with larger than their optimal choice of working hours. A German personnel data set, which contains precise information on wages as well as working and absence hours, is used to assess the impact of such downward adjustment on wage inequality and wage differentials (gender, schooling, age).

Suggested Citation

  • Christian Pfeifer, 2009. "Effective Working Hours and Wages: The Case of Downward Adjustment via Paid Absenteeism," Working Paper Series in Economics 152, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:152
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    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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