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The Decline of Overtime Working in Britain

Author

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  • Bell, David N.F.

    (University of Stirling)

  • Hart, Robert A.

    (University of Stirling)

Abstract

The share of overtime hours within total hours worked in Britain has declined from 4.8% to 2.9% between 1999 and 2018. This is equivalent to 321 thousand full-time jobs. We investigate this decline focussing on full-time and part-time males and females together with overtime pay effects that include the implications for the gender pay gap. We test for economic, structural and cyclical influences via a two-part regression model that allows us to differentiate between the incidence of overtime working and the average weekly hours of overtime workers. This investigation features collective bargaining coverage, job mobility, the minimum wage, industrial composition and the public/private sector dichotomy. The analysis covers the whole economy embracing nineteen 1-digit industries as well as a separate insight into the manufacturing industry where we feature vehicle manufacture.

Suggested Citation

  • Bell, David N.F. & Hart, Robert A., 2019. "The Decline of Overtime Working in Britain," IZA Discussion Papers 12651, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12651
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    References listed on IDEAS

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    1. Drukker, David M., 2017. "Two-part models are robust to endogenous selection," Economics Letters, Elsevier, vol. 152(C), pages 71-72.
    2. Hart,Robert A., 2004. "The Economics of Overtime Working," Cambridge Books, Cambridge University Press, number 9780521801423, November.
    3. Bils, Mark J, 1985. "Real Wages over the Business Cycle: Evidence from Panel Data," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 666-689, August.
    4. Robert A. Hart, 2023. "Hours vs employment in response to demand shocks," IZA World of Labor, Institute of Labor Economics (IZA), pages 393-393, February.
    5. Hart, Robert A. & Ma, Yue, 2010. "Wage-hours contracts, overtime working and premium pay," Labour Economics, Elsevier, vol. 17(1), pages 170-179, January.
    6. Sagyndykova, Galiya & Oaxaca, Ronald L., 2019. "Raising the Overtime Premium and Reducing the Standard Workweek: Short-Run Impacts on U.S. Manufacturing," IZA Discussion Papers 12557, Institute of Labor Economics (IZA).
    7. David N. F. Bell & Robert A. Hart, 2003. "Wages, Hours, and Overtime Premia: Evidence from the British Labor Market," ILR Review, Cornell University, ILR School, vol. 56(3), pages 470-480, April.
    8. Trejo, Stephen J, 1991. "The Effects of Overtime Pay Regulation on Worker Compensation," American Economic Review, American Economic Association, vol. 81(4), pages 719-740, September.
    9. Kinoshita, Tomio, 1987. "Working Hours and Hedonic Wages in the Market Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 95(6), pages 1262-1277, December.
    10. Brown , W. & Bryson , A. & Forth , J., 2008. "Competition and the Retreat from Collective Bargaining," Cambridge Working Papers in Economics 0831, Faculty of Economics, University of Cambridge.
    11. Monica Costa Dias & Robert Joyce & Francesca Parodi, 2019. "The gender pay gap in the UK: children and experience in work," Carlo Alberto Notebooks 594, Collegio Carlo Alberto.
    12. Federico Belotti & Partha Deb & Willard G. Manning & Edward C. Norton, 2015. "twopm: Two-part models," Stata Journal, StataCorp LP, vol. 15(1), pages 3-20, March.
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    Cited by:

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    2. Robert A Hart, 2022. "Labour productivity during the Great Depression and the Great Recession in UK engineering and metal manufacture [The Productivity Puzzle: a Firm-level Investigation into Employment Behaviour and Re," Oxford Economic Papers, Oxford University Press, vol. 74(2), pages 431-452.
    3. Koch, Andreas & Kirchmann, Andrea & Reiner, Marcel & Scheu, Tobias & Zühlke, Anne & Bonin, Holger, 2020. "Verhaltensmuster von Betrieben und Beschäftigten im Kontext des gesetzlichen Mindestlohns," IZA Research Reports 97, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    overtime hours; overtime pay; two-part regression model;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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