Long-Term Effects of Unpaid Overtime: Evidence for West Germany

No 614, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Why do people work unpaid overtime? We show that remarkable long-term labor earnings gains are associated with unpaid overtime in West Germany. A descriptive analysis suggests that over a 10-year period workers with unpaid overtime experience on average at least a 10 percentage points higher increase in real labor earnings than their co-workers. Applying panel data models this result generally holds. Furthermore, we find some evidence for gender specific differences with respect to the effects of unpaid overtime work. Our results point to the importance of investment in current working hours beyond the standard work week to enhance real earnings prospects.

Keywords: overtime; linear panel data models; overtime compensation; labour earnings (search for similar items in EconPapers)
JEL-codes: J22 J23 J31 J33 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2002-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Scottish Journal of Political Economy, 2005, 52 (2), 177-193

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