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The Non-Agricultural Labour Productivity Effects of Working Time: South Africa's Case

Author

Listed:
  • Chama CHIPETA

    (University of Johannesburg, South Africa)

  • Thomas HABANABAKIZE

    (Tshwane University of Technology, South Africa)

  • Mulatu Fekadu ZERIHUN

    (Tshwane University of Technology, South Africa)

Abstract

The purpose of the current study is to assess the impact of working time on non-agricultural labour productivity in the South African economy. To achieve this objective, the study utilised the Autoregressive Distributed Lag Model (ARDL) and correlation analysis to analyse the effects of different working time arrangements on labour productivity. The results of the study indicated that weekly working hours have a significant influence on worker productivity. Working between 30 and 39 hours per week was found to greatly enhance productivity both in the short and long term. Additionally, working between 15 and 29 hours per week showed a slight positive effect on productivity. Conversely, working more than 39 hours per week (between 40 and 45 hours) only increased productivity in the short term, while working less than 29 hours and exceeding 45 hours per week had a negative impact on labour productivity. These findings suggest that an optimal working schedule to maximise labour productivity is between 30 and 40 hours per week, with overtime not exceeding 5 hours per week. Establishing a proper schedule of weekly working hours is crucial for maximising labour productivity and reducing work-related stress, which can impede productivity.

Suggested Citation

  • Chama CHIPETA & Thomas HABANABAKIZE & Mulatu Fekadu ZERIHUN, 2024. "The Non-Agricultural Labour Productivity Effects of Working Time: South Africa's Case," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(1), pages 61-77, February.
    • Handle: RePEc:rom:merase:v:9:y:2024:i:1:p:61-77
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    References listed on IDEAS

    as
    1. Devicienti, Francesco & Grinza, Elena & Vannoni, Davide, 2015. "The Impact of Part-Time Work on Firm Total Factor Productivity: Evidence from Italy," IZA Discussion Papers 9463, Institute of Labor Economics (IZA).
    2. Junsoo Lee & Mark C. Strazicich, 2013. "Minimum LM unit root test with one structural break," Economics Bulletin, AccessEcon, vol. 33(4), pages 2483-2492.
    3. Ronald Burke, 2009. "Working to Live or Living to Work: Should Individuals and Organizations Care?," Journal of Business Ethics, Springer, vol. 84(2), pages 167-172, January.
    4. repec:bla:econom:v:56:y:1989:i:224:p:473-86 is not listed on IDEAS
    5. Francoise Delmez & Vincent Vandenberghe, 2018. "Long Working Hours Make Us Less Productive but Also Less Costly," LABOUR, CEIS, vol. 32(4), pages 259-287, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    employment; labour productivity; working hours; working schedules; labour market.;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • D2 - Microeconomics - - Production and Organizations
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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