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Title:Does the Statutory Overtime Premium Discourage Long Workweeks? PDF Logo
Authors:Trejo, Stephen J.
Issue Date:2001
Series/Report no.:IZA Discussion paper series 373
Abstract:Using a pooled data set consisting of 20 annual observations on each of eleven major industry groups, I estimate the effects of overtime pay regulation on weekly work schedules. After controlling for workweek trends within industries, the sharp expansions in overtime pay coverage resulting from legislative amendments and Supreme Court decisions produced no discernible impact on overtime hours. This finding is consistent with a model of labor market equilibrium in which straight-time hourly wages adjust to neutralize the statutory overtime premium.
Subjects:Overtime
work hours
compensating differential
JEL:J33
J38
J23
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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