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

17 Pages Posted: 9 Jun 2005

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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Abstract

Why do people work unpaid overtime? Using data from the German Socio-Economic Panel, we show that remarkable long-term labour 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 labour 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 worked. Our results point to the importance of investment in current working hours beyond the standard work week to enhance real earnings prospects.

Suggested Citation

Pannenberg, Markus, Long-Term Effects of Unpaid Overtime: Evidence for West Germany. Available at SSRN: https://ssrn.com/abstract=729481

Markus Pannenberg (Contact Author)

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