Does the Statutory Overtime Premium Discourage Long Workweeks?

Stephen Trejo

No 373, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: compensating differential; work hours; Overtime (search for similar items in EconPapers)
JEL-codes: J23 J33 J38 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2001-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Industrial and Labor Relations Review, 2003, 56 (3), 530-551

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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? (1997)
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