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Minimum Hours Constraints: The Role of Organizational Culture

Author

Listed:
  • Maciej Albinowski
  • Joanna Franaszek
Abstract
We develop a model in which minimum hours constraints (MHC) arise due to both the characteristics of the production function and managerial attitudes. The importance of the organizational culture can be deduced from the correlation between the MHC faced by core tasks personnel and by administrative workers. The tasks performed by administrative workers, such as secretaries, accountants, and HR specialists, are similar across firms. If organizational culture played no role in the origination of MHC, the MHC for administrative workers should be independent of the MHC for core tasks personnel. We test the prediction of our model using the Structure of Earnings Survey data from 19 European countries. We find that across all economic sectors and countries, non-administrative workers are significantly more likely to face MHC in firms with rigid MHC for administrative workers. The explanatory power of our proxy for organizational culture is comparable to that of sector fixed effects. We also find that a culture of rigid working hours is more common in small and medium-sized firms, and in firms with a low share of young managers.

Suggested Citation

  • Maciej Albinowski & Joanna Franaszek, 2024. "Minimum Hours Constraints: The Role of Organizational Culture," IBS Working Papers 01/2024, Instytut Badan Strukturalnych.
    • Handle: RePEc:ibt:wpaper:wp012024
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    References listed on IDEAS

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    1. John Ameriks & Joseph Briggs & Andrew Caplin & Minjoon Lee & Matthew D. Shapiro & Christopher Tonetti, 2020. "Older Americans Would Work Longer If Jobs Were Flexible," American Economic Journal: Macroeconomics, American Economic Association, vol. 12(1), pages 174-209, January.
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    4. David Blau & Tetyana Shvydko, 2011. "Labor Market Rigidities and the Employment Behavior of Older Workers," ILR Review, Cornell University, ILR School, vol. 64(3), pages 464-484, April.
    5. Heejung Chung, 2020. "Gender, Flexibility Stigma and the Perceived Negative Consequences of Flexible Working in the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(2), pages 521-545, September.
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    Cited by:

    1. Albinowski, Maciej, 2024. "Part-time employment opportunities and labour supply of older workers," The Journal of the Economics of Ageing, Elsevier, vol. 28(C).

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    More about this item

    Keywords

    hours constraints; organizational culture; part-time employment;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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