Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/207383 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12557
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
A nine-factor input model is developed to estimate the monthly demand for employment, capital, and weekly hours per worker/workweek in U.S. Manufacturing. The labor inputs correspond to production and non-production workers disaggregated by overtime and non-overtime employment. Policy simulations are conducted to examine the short-run effects on the monthly growth rates for employment, labor earnings, capital usage, and the workweek from either a) raising the overtime premium to double-time, or b) reducing the standard workweek to 35 hours. Although the growth rate policy effects are heterogeneous across disaggregated labor input categories, on aver- age both policy changes exhibit negative effects on the growth rates of industry-wide employment, earnings, and non-labor input usage. The growth rate of the workweek is virtually unaffected by raising the overtime premium but is negatively impacted by reducing the standard work week.
Subjects: 
overtime
employment
workweek
JEL: 
J23
J88
Document Type: 
Working Paper

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