Does the Statutory Overtime Premium Discourage Long Workweeks?

57 Pages Posted: 9 Oct 2001

See all articles by Stephen J. Trejo

Stephen J. Trejo

University of Texas at Austin - Department of Economics; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: September 2001

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: Overtime, Work Hours, Compensating Differential

JEL Classification: J33, J38, J23

Suggested Citation

Trejo, Stephen J., Does the Statutory Overtime Premium Discourage Long Workweeks? (September 2001). Available at SSRN: https://ssrn.com/abstract=286602 or http://dx.doi.org/10.2139/ssrn.286602

Stephen J. Trejo (Contact Author)

University of Texas at Austin - Department of Economics ( email )

Austin, TX 78712
United States
512-475-8512 (Phone)
512-471-3510 (Fax)

IZA Institute of Labor Economics

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

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