Modelling Hours of Work in a Labour Services Function

Derek Leslie

Scottish Journal of Political Economy, 1991, vol. 38, issue 1, 19-31

Abstract: This paper models hours of work by including overtime workers and standard time workers in a labor services function. Average hours vary through compositional changes in the number of overtime and standard time workers. In the usual approach, only direct changes in hours worked cause changes in average hours, whereas the vast majority of hours changes comes from the former process. The alternative framework is just as tractable as the conventional model, yet it has a rather different set of predictions. In particular, cuts in normal hours and the fringe barrier to employment hypothesis are shown to operate in a rather different way. Copyright 1991 by Scottish Economic Society.

Date: 1991
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