More Hours, More Jobs? The Employment Effects of Longer Working Hours

29 Pages Posted: 23 Jun 2012

See all articles by Martyn J. Andrews

Martyn J. Andrews

University of Manchester - School of Social Sciences

Hans-Dieter Gerner

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Thorsten Schank

University of Erlangen-Nuremberg

Richard Upward

University of Nottingham - School of Economics

Abstract

Increases in standard hours have been a contentious policy issue in Germany. Whilst this might directly lead to a substitution of workers by hours, there may also be a positive employment effect due to reduced costs. Moreover, the response of firms differs between firms which offer overtime and those which do not. For a panel of German plants (2001-2006), we analyse the effect of increased standard hours on employment. Using difference-in-difference methods we find that, consistent with theory, overtime plants showed a significant positive employment response, whilst for standard-time plants there is no difference at all between plants which increased standard hours and those which did not.

Keywords: working time, employment, plant-level data, difference-in-differences

JEL Classification: C23, J23, J81

Suggested Citation

Andrews, Martyn J. and Gerner, Hans-Dieter and Schank, Thorsten and Upward, Richard, More Hours, More Jobs? The Employment Effects of Longer Working Hours. IZA Discussion Paper No. 6652. Available at SSRN: https://ssrn.com/abstract=2089701

Martyn J. Andrews (Contact Author)

University of Manchester - School of Social Sciences ( email )

Oxford Road
Manchester, M13 9PL
United Kingdom
0161 275-4874 (Phone)

Hans-Dieter Gerner

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

Thorsten Schank

University of Erlangen-Nuremberg ( email )

Schloßplatz 4
Erlangen, Bavaria 91054
Germany

Richard Upward

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom
+44 115 951 5151 (Phone)
+44 115 951 4159 (Fax)

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