Does the Statutory Overtime Premium Discourage Long Workweeks?

Stephen Trejo

University of California at Santa Barbara, Economics Working Paper Series from Department of Economics, UC Santa Barbara

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.

Keywords: Statutory; Overtime; Premium; Long Workweeks (search for similar items in EconPapers)
Date: 1997-02-01
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Does the Statutory Overtime Premium Discourage Long Workweeks? (2003)
Working Paper: Does the Statutory Overtime Premium Discourage Long Workweeks? (2001)
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