search query: @indexterm overtime / total: 24
reference: 8 / 24
| Author: | |
| Title: | The effects of overtime pay regulation on worker compensation |
| Journal: | American Economic Review
1991 : SEP, VOL. 81:4, p.719-740 |
| Index terms: | OVERTIME PAY WORKERS COMPENSATION WAGE DETERMINATION PAY DIFFERENTIALS |
| Language: | eng |
| Abstract: | Proponents claim that a statutory overtime premium, by raising the relative cost of overtime, may encourage firms to substitute employment for overtime hours. Arguments are presented that there will be no real effects if firms reduce straight-time wages so as to offer the same package of weekly compensation and hours of work that was acceptable initially. Empirical analysis suggests that wage differentials do arise to mitigate the purely demand-driven effects predicted by previous models, but these differentials are not large enough to neutralize overtime pay regulation completely. The offsetting adjustments that do occur serve to limit the potential usefulness of overtime pay regulations as a job-creation device. |
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