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

23 Pages Posted: 11 Nov 2002

See all articles by Markus Pannenberg

Markus Pannenberg

University of Applied Sciences Bielefeld - Department of Business and Economics; DIW Berlin - GSOEP; Institute for the Study of Labor (IZA), Bonn

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Date Written: October 2002

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, Overtime Compensation, Labour Earnings, Linear Panel Data Models

JEL Classification: J22, J23, J31, J33

Suggested Citation

Pannenberg, Markus, Long-Term Effects of Unpaid Overtime: Evidence for West Germany (October 2002). Available at SSRN: https://ssrn.com/abstract=343888

Markus Pannenberg (Contact Author)

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