Impact of overtime regulations on wages and work hours

Sachiko Kuroda and Isamu Yamamoto

Journal of the Japanese and International Economies, 2012, vol. 26, issue 2, 249-262

Abstract: Exploiting an ambiguity in the criteria regarding which employees are exempt from overtime regulations in Japan, this paper used the longitudinal data of Japanese employees to examine whether overtime regulations have an impact on hourly wages and hours worked. We found that although the differences between the hourly wages of the exempt and non-exempt employees were negligible, the hours worked by exempt employees were longer, especially for non-university graduates during the recessionary period. We interpreted that the fixed-wage model, rather than the fixed-job model, was prevalent during the recession period, especially for workers with low bargaining power.

Keywords: Wage; Hours worked; Overtime regulations; White-collar exemption; Fixed-job model; Fixed-wage model (search for similar items in EconPapers)
JEL-codes: J33 J50 K31 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:26:y:2012:i:2:p:249-262

DOI: 10.1016/j.jjie.2012.01.003

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