Paid and Unpaid Overtime Working in Germany and the UK

38 Pages Posted: 10 Sep 2000

See all articles by Robert A. Hart

Robert A. Hart

University of Stirling - Department of Economics; Institute for the Study of Labor (IZA)

David N.F. Bell

University of Stirling - Department of Economics; IZA Institute of Labor Economics

Olaf Hübler

University of Hannover; IZA Institute of Labor Economics

Wolfgang Schwerdt

European Central Bank (ECB)

Date Written: March 2000

Abstract

Significant numbers of employees work more hours in the workplace than their contract stipulates. Such overtime work can either be paid or unpaid. This research considers overtime working in Germany and the UK and shows that the quantitative significance of both paid and unpaid overtime is greater in the UK. Empirical work is based on the UK Labour Force Survey and the German Socio-Economic Panel in 1993. Overtime influences the effective average hourly wage positively in the case where overtime is paid at premium rates and negatively where such hours are not remunerated. We demonstrate via Mincer wage growth equations that accounting for unpaid work leads to revised estimates of experience and tenure both within and between the two countries. We estimate overtime hours equations, using these to test several of our theories that might explain the apparent irrationality of unpaid work.

JEL Classification: J22, J23, J33

Suggested Citation

Hart, Robert A. and Bell, David N.F. and Hübler, Olaf and Schwerdt, Wolfgang, Paid and Unpaid Overtime Working in Germany and the UK (March 2000). IZA Discussion Paper No. 133. Available at SSRN: https://ssrn.com/abstract=224243

Robert A. Hart (Contact Author)

University of Stirling - Department of Economics ( email )

Stirling, Scotland FK9 4LA
United Kingdom
+44 1786 467 471 (Phone)
+44 1786 467 469 (Fax)

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

David N.F. Bell

University of Stirling - Department of Economics ( email )

Stirling, Scotland FK9 4LA
United Kingdom
+44 1786 467 486 (Phone)
+44 1786 467 469 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Olaf Hübler

University of Hannover ( email )

Institute of Quantitative Economic Research
D-30167 Hannover
Germany
+49 511 762 4794 (Phone)
+49 511 762 3923 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Wolfgang Schwerdt

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

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