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Working Long Hours and Early Career Outcomes in the High-End Labor Market

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  • Gicheva, Dora

    () (University of North Carolina at Greensboro, Department of Economics)

Abstract

This study establishes empirically a nonlinear relationship between hours worked per week and hourly wage growth: for workers who put in 48 hours per week or more, working 5 extra hours per week increases annual wage growth by about 1 percent. The average effect is zero when hours are below 48. This relationship is especially strong for young professional workers. I provide evidence in support of a model of promotions that combines higher skill-sensitivity of output in upper levels of the job ladder with worker heterogeneity. The results can be used to account for part of the gender wage gap.

Suggested Citation

  • Gicheva, Dora, 2010. "Working Long Hours and Early Career Outcomes in the High-End Labor Market," UNCG Economics Working Papers 10-3, University of North Carolina at Greensboro, Department of Economics.
  • Handle: RePEc:ris:uncgec:2010_003
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    References listed on IDEAS

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    Cited by:

    1. Barlevy, Gadi & Neal, Derek, 2016. "Allocating Effort and Talent in Professional Labor Markets," Working Paper Series WP-2016-3, Federal Reserve Bank of Chicago.
    2. Kato, Takao & Ogawa, Hiromasa & Owan, Hideo, 2016. "Working Hours, Promotion and the Gender Gap in the Workplace," IZA Discussion Papers 10454, Institute for the Study of Labor (IZA).
    3. KAWAGUCHI Daiji & OWAN Hideo & TAKAHASHI Kazuteru, 2016. "Working Hours, Promotion, and Gender Gaps in the Workplace," Discussion papers 16060, Research Institute of Economy, Trade and Industry (RIETI).
    4. repec:iza:izawol:journl:2017:n:358 is not listed on IDEAS
    5. Kato, Takao & Kodama, Naomi, 2014. "Labor Market Deregulation and Female Employment: Evidence from a Natural Experiment in Japan," IZA Discussion Papers 8189, Institute for the Study of Labor (IZA).
    6. Dora Gicheva, 2013. "Working Long Hours and Early Career Outcomes in the High-End Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 31(4), pages 785-824.
    7. repec:bla:ijethy:v:13:y:2017:i:1:p:73-94 is not listed on IDEAS
    8. AGO Takanori & MORITA Tadashi & TABUCHI Takatoshi & YAMAMOTO Kazuhiro, 2015. "Elastic Labor Supply and Agglomeration," Discussion papers 15118, Research Institute of Economy, Trade and Industry (RIETI).
    9. Andrés Erosa & Luisa Fuster & Gueorgui Kambourov & Richard Rogerson, 2017. "Hours, Occupations, and Gender Differences in Labor Market Outcomes," NBER Working Papers 23636, National Bureau of Economic Research, Inc.
    10. Ulrike Famira-Mühlberger & Stefan Fuchs, 2013. "Unpaid Overtime in Austria," WIFO Monatsberichte (monthly reports), WIFO, vol. 86(11), pages 897-908, November.
    11. repec:eti:dpaper:13038 is not listed on IDEAS
    12. Takanori Ago & Tadashi Morita & Takatoshi Tabuchi & Kazuhiro Yamamoto, 2017. "Endogenous labor supply and international trade," International Journal of Economic Theory, The International Society for Economic Theory, vol. 13(1), pages 73-94, March.
    13. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    14. Chinhui Juhn & Kristin McCue, 2017. "Specialization Then and Now: Marriage, Children, and the Gender Earnings Gap across Cohorts," Journal of Economic Perspectives, American Economic Association, vol. 31(1), pages 183-204, Winter.
    15. Joseph G. Altonji & Peter Arcidiacono & Arnaud Maurel, 2015. "The Analysis of Field Choice in College and Graduate School: Determinants and Wage Effects," NBER Working Papers 21655, National Bureau of Economic Research, Inc.
    16. repec:wly:quante:v:8:y:2017:i:3:p:895-927 is not listed on IDEAS
    17. Cortes, Patricia & Pan, Jessica, 2016. "When Time Binds: Returns to Working Long Hours and the Gender Wage Gap among the Highly Skilled," IZA Discussion Papers 9846, Institute for the Study of Labor (IZA).
    18. Kato, Takao & Kodama, Naomi, 2017. "Women in the Workplace and Management Practices: Theory and Evidence," IZA Discussion Papers 10788, Institute for the Study of Labor (IZA).
    19. Christian Belzil & Jorgen Hansen & Xingfei Liu, 2017. "Dynamic skill accumulation, education policies, and the return to schooling," Quantitative Economics, Econometric Society, vol. 8(3), pages 895-927, November.

    More about this item

    Keywords

    wage growth; working hours; promotions; gender wage gap; disutility of labor;

    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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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