More hours, more jobs?

Abstract

"Increases in standard hours have been a contentious policy issue in Germany. Whilst this might directly lead to a substitution of workers by hours, there may also be a positive employment effect due to reduced costs. Moreover, the response of firms differs between firms which offer overtime and those which do not. For a panel of German plants (2001-2006), we analyse the effect of increased standard hours on employment. Using difference-in-difference methods we find that, consistent with theory, overtime plants showed a significant positive employment response, whilst for standard-time plants there is no difference at all between plants which increased standard hours and those which did not." (Author's abstract, IAB-Doku) ((en))

Cite article

Andrews, M., Gerner, H., Schank, T. & Upward, R. (2012): More hours, more jobs? The employment effects of longer working hours. (IZA discussion paper 6652), Bonn, 26 p.