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

Author

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  • Dora Gicheva

    (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

  • Dora Gicheva, 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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    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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