Does Work Time Flexibility Work? An Empirical Assessment of the Efficiency Effects for German Firms

32 Pages Posted: 23 Jul 2004 Last revised: 8 Jun 2014

See all articles by Elke Wolf

Elke Wolf

Center for European Economic Research (ZEW)

Miriam Beblo

ZEW – Leibniz Centre for European Economic Research

Date Written: July 2004

Abstract

In this paper, we assess the impact of flexible work time schedules on firm efficiency using representative establishment data for Germany. Following the approach by Battese and Coelli (1995), we estimate a stochastic production frontier and the determinants of technical efficiency simultaneously. The innovation of our study is that we draw on technical efficiency instead of productivity to appraise the success of flexible working hours. The results indicate that while the use of work time schedules with moderate flexibility is positively related to technical efficiency, highly flexible work time arrangements seem to be negatively correlated with an efficient organization of the work flow. However, these efficiency losses should not be interpreted as causal effects, because highly flexible work time schedules are most likely to be introduced in struggling firms.

Keywords: Stochastic production frontier, flexible work hours, efficiency

JEL Classification: D29, L23, M54

Suggested Citation

Wolf, Elke and Beblo, Miriam, Does Work Time Flexibility Work? An Empirical Assessment of the Efficiency Effects for German Firms (July 2004). ZEW - Centre for European Economic Research Discussion Paper No. 04-047, Available at SSRN: https://ssrn.com/abstract=567622 or http://dx.doi.org/10.2139/ssrn.567622

Elke Wolf (Contact Author)

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Miriam Beblo

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

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