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Moonlighting and Overtime: A Cross-Country Analysis

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  • FRANCESCO RENNA

Abstract

I investigate how contractual hours and overtime premiums affect the decision either to moonlight or to work overtime. By reducing the standard workweek, the government or labor unions can affect the likelihood that a worker faces an hour constraint. An underemployed worker can secure additional earnings by working either on a second job or overtime. I model this decision as a bivariate probit. To create variation in the overtime rates, data for nine OECD countries are pooled. I find that decreasing the standard hours of work increases the probability of moonlighting. The overtime premium has an ambiguous effect on the probability of moonlighting, but it has a negative effect on the probability of working overtime.

Suggested Citation

  • Francesco Renna, 2006. "Moonlighting and Overtime: A Cross-Country Analysis," Journal of Labor Research, Transaction Publishers, vol. 27(4), pages 575-591, October.
    • Handle: RePEc:tra:jlabre:v:27:y:2006:i:4:p:575-591
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    Citations

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    Cited by:

    1. Timothy B. Folta & Frédéric Delmar & Karl Wennberg, 2010. "Hybrid Entrepreneurship," Management Science, INFORMS, vol. 56(2), pages 253-269, February.
    2. Xi, Guoqian & Block, Jörn & Lasch, Frank & Robert, Frank & Thurik, Roy, 2017. "Mode of Entry into Hybrid Entrepreneurship: New Venture Start-Up versus Business Takeover," IZA Discussion Papers 11104, Institute of Labor Economics (IZA).
    3. Andrew Atherton & João R. Faria & Daniel Wheatley & Dongxu Wu & Zhongmin Wu, 2016. "The decision to moonlight: does second job holding by the self-employed and employed differ?," Industrial Relations Journal, Wiley Blackwell, vol. 47(3), pages 279-299, May.
    4. Luan, Mengna & Tao, Zhigang & Yuan, Hongjie, 2023. "Monopsony power and workers’ switching costs: Evidence from hospitals in China," Economics Letters, Elsevier, vol. 233(C).
    5. Drebit, Sharla & Ngan, Karen & Hay, Mande & Alamgir, Hasanat, 2010. "Trends and costs of overtime among nurses in Canada," Health Policy, Elsevier, vol. 96(1), pages 28-35, June.
    6. Jörn H. Block & Andreas Landgraf, 2016. "Transition from part-time entrepreneurship to full-time entrepreneurship: the role of financial and non-financial motives," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 259-282, March.
    7. Boudreaux, Don & Palagashvili, Liya, 2016. "An Economic Analysis of Overtime Pay Regulations," Working Papers 06869, George Mason University, Mercatus Center.
    8. Pouliakas, Konstantinos & Panos, Georgios & Zangelidis, Alexandros, 2009. "The Inter-Related Dynamics of Dual Job Holding, Human Capital and Occupational Choice," MPRA Paper 16859, University Library of Munich, Germany.
    9. 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).
    10. Georgios A. Panos & Konstantinos Pouliakas & Alexandros Zangelidis, 2014. "Multiple Job Holding, Skill Diversification, and Mobility," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(2), pages 223-272, April.
    11. Philipp Lentge, 2022. "Second job holding in Germany – a persistent feature?," Working Paper Series in Economics 416, University of Lüneburg, Institute of Economics.

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