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

Andrews, Martyn; Gerner, Hans-Dieter; Schank, Thorsten; Upward, Richard

Authors

Martyn Andrews martyn.andrews@manchester.ac.uk

Hans-Dieter Gerner hans-dieter.gerner@iab.de

Thorsten Schank schank@uni-mainz.de



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.

Journal Article Type Article
Publication Date Sep 16, 2014
Journal Oxford Economic Papers
Print ISSN 0030-7653
Electronic ISSN 0030-7653
Publisher Oxford University Press (OUP)
Peer Reviewed Peer Reviewed
Volume 67
Issue 2
APA6 Citation Andrews, M., Gerner, H., Schank, T., & Upward, R. (2014). More hours, more jobs? The employment effects of longer working hours. Oxford Economic Papers, 67(2), doi:10.1093/oep/gpu026
DOI https://doi.org/10.1093/oep/gpu026
Keywords working hours, wage concession, overtime payments
Publisher URL http://oep.oxfordjournals.org/content/67/2/245
Copyright Statement Copyright information regarding this work can be found at the following address: http://eprints.nottingh.../end_user_agreement.pdf
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

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://eprints.nottingham.ac.uk/end_user_agreement.pdf





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