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The Impact of Federal Overtime Legislation on Public Sector Labor Markets

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  • John H. Johnson IV

    (National Economic Research Associates)

Abstract

In this article, I provide both econometric and case study evidence on the labor market effects of the U.S. Supreme Court's 1985 Garcia v. San Antonio Metropolitan Transit Authority decision that made 80% of state and local government workers eligible to receive compensation for overtime hours worked. Empirical evidence suggests that the behavior of public sector workers is consistent with a Coasian model in which overtime provisions are explicitly bargained for by the parties involved, likely making overtime legislation an ineffective tool for influencing the amount of overtime hours worked by public sector employees.

Suggested Citation

  • John H. Johnson IV, 2003. "The Impact of Federal Overtime Legislation on Public Sector Labor Markets," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 43-69, January.
    • Handle: RePEc:ucp:jlabec:v:21:y:2003:i:1:p:43-69
    DOI: 10.1086/344123
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    References listed on IDEAS

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    1. Daniel S. Hamermesh & Stephen J. Trejo, 2000. "The Demand for Hours of Labor: Direct Evidence from California," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 38-47, February.
    2. Dora L. Costa, 2000. "Hours of Work and the Fair Labor Standards Act: A Study of Retail and Wholesale Trade, 1938–1950," ILR Review, Cornell University, ILR School, vol. 53(4), pages 648-664, July.
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    Cited by:

    1. Quach, Simon, 2020. "The Labor Market Effects of Expanding Overtime Coverage," MPRA Paper 100613, University Library of Munich, Germany.
    2. Leonard Goff, 2022. "Treatment Effects in Bunching Designs: The Impact of Mandatory Overtime Pay on Hours," Papers 2205.10310, arXiv.org, revised Jun 2024.

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