More hours, more jobs? The employment effects of longer working hours

Andrews, Martyn and Gerner, Hans-Dieter and Schank, Thorsten and Upward, Richard (2014) More hours, more jobs? The employment effects of longer working hours. Oxford Economic Papers, 67 (2). pp. 245-268. ISSN 0030-7653

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Abstract

Increases in standard hours of work 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 may differ between firms that offer overtime and those that do not. For a panel of German plants (2001–2006) drawn from the IAB Establishment Panel, we are the first to 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 between plants that increased standard hours and those that did not. There is clear evidence of wage concession in all treated plants.

Item Type: Article
Additional Information: This is a pre-copyedited, author-produced PDF of an article accepted for publication in Oxford Economic Papers following peer review. The version of record: Martyn Andrews, Hans-Dieter Gerner, Thorsten Schank and Richard Upward, More hours, more jobs? The employment effects of longer working hours. Oxford Economic Papers. 2015, 67(2), 245-268 is available online at: http://oep.oxfordjournals.org/content/67/2/245
Keywords: working hours, wage concession, overtime payments
Schools/Departments: University of Nottingham UK Campus > Faculty of Social Sciences > School of Economics
Identification Number: https://doi.org/10.1093/oep/gpu026
Depositing User: Kesaite, Viktorija
Date Deposited: 02 Sep 2015 14:35
Last Modified: 23 Sep 2016 22:46
URI: http://eprints.nottingham.ac.uk/id/eprint/29753

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