Raising the Overtime Premium and Reducing the Standard Workweek: Short-Run Impacts on U.S. Manufacturing

Arbeitspapier

A nine-factor input model is developed to estimate the monthly demand for employment, capital, and weekly hours per worker/workweek in U.S. Manufacturing. The labor inputs correspond to production and non-production workers disaggregated by overtime and non-overtime employment. Policy simulations are conducted to examine the short-run effects on the monthly growth rates for employment, labor earnings, capital usage, and the workweek from either a) raising the overtime premium to double-time, or b) reducing the standard workweek to 35 hours. Although the growth rate policy effects are heterogeneous across disaggregated labor input categories, on aver- age both policy changes exhibit negative effects on the growth rates of industry-wide employment, earnings, and non-labor input usage. The growth rate of the workweek is virtually unaffected by raising the overtime premium but is negatively impacted by reducing the standard work week.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 12557

Classification and Topics

• Classification: Wirtschaft ; Labor Demand ; Labor Standards: Public Policy
• Subject: overtime ; employment ; workweek

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Sagyndykova, Galiya ; Oaxaca, Ronald L.
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/207383
• Last update: 10.03.2025, 11:41 AM CET