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Men earn less under working time accounts: a puzzle?

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  • Olaf Hübler

Abstract

In recent years more and more working time accounts (WTA) have been introduced. From a theoretical perspective both employers and employees benefit from such an instrument. Indeed, empirical studies show that life satisfaction of workers is larger under a WTA regime than under a non-WTA regime. However, more detailed investigations in this article reveal wages to be lower for men under WTA regimes. Why should men accept WTA when they earn less? Subgroup analyses show that these results are only valid for some groups of individuals. Our analysis allows us to deliver some explanations and to exclude other possible reasons. The major results are: (1) High-income workers suffer higher losses; (2) the shorter the compensation period of WTA systems the lower the wage reduction imposed by WTA; (3) the length of total working time does not seem to affect the link between WTA and wages but the length of overtime; (4) men accept wage losses from WTA if they can adjust actual to desired working hours.

Suggested Citation

  • Olaf Hübler, 2017. "Men earn less under working time accounts: a puzzle?," Applied Economics Letters, Taylor & Francis Journals, vol. 24(1), pages 4-7, January.
    • Handle: RePEc:taf:apeclt:v:24:y:2017:i:1:p:4-7
    DOI: 10.1080/13504851.2016.1156228
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    Cited by:

    1. Hübler, Olaf, 2017. "Health and Body Mass Index: No Simple Relationship," IZA Discussion Papers 10620, Institute of Labor Economics (IZA).
    2. Hübler, Olaf, 2017. "Health and weight – gender-specific linkages under heterogeneity, interdependence and resilience factors," Economics & Human Biology, Elsevier, vol. 26(C), pages 96-111.

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