Determinants of Voluntary Overtime Decisions

Todd Idson () and Philip Robins

Economic Inquiry, 1991, vol. 29, issue 1, 79-91

Abstract: This paper develops and estimates a model of the labor supply for overtime work when some workers' choices are constrained by mandatory overtime provisions of employers. Economic incentives are shown to have a significant effect on workers' overtime decision. Policy simulations suggest that an increase in the overtime premium would lead to greater voluntary overtime work, as would a lowering of the level of weekly hours after which the mandatory premium takes effect. The estimated effects of these changes are not quantitatively large, indicating that workers are fairly insensitive to changes in monetary incentives in making overtime decisions. Copyright 1991 by Oxford University Press.

Date: 1991
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