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Wages, Hours, and Overtime Premia: Evidence from the British Labor Market

Posted: 23 Jul 2003  

David N.F. Bell

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

Robert A. Hart

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

Abstract

Unlike the United States, Britain has no national laws regulating overtime hour assignment or compensation. Using individual-level data on male non-managerial workers from the 1998 British New Earnings Survey, the authors investigate relationships among the standard hourly wage rate, hourly earnings (including overtime), the overtime premium, and the length of overtime hours. They find that when overtime is accounted for, average hourly wage earnings are fairly uniform across firms in a given industry, because firms paying below-market-level straight-time wages tend to award above-market-level overtime premiums, and, conversely, firms paying above-market-level straight-time wages provide below-market-level overtime premiums.

JEL Classification: J22, J23

Suggested Citation

Bell, David N.F. and Hart, Robert A., Wages, Hours, and Overtime Premia: Evidence from the British Labor Market. Industrial & Labor Relations Review, Vol. 56, No. 3, April 2003. Available at SSRN: https://ssrn.com/abstract=395060

David N.F. Bell (Contact Author)

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

Robert A. Hart

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

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