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The Timing of Labor Demand

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Abstract

We examine the timing of firms' operations in a formal model of labor demand. Merging a variety of data sets from Portugal from 1995-2004, we describe temporal patterns of firms' demand for labor and estimate production-functions and relative labor-demand equations. The results demonstrate the existence of substitution of employment across times of the day/week and show that legislated penalties for work at irregular hours induce firms to alter their operating schedules. The results suggest a role for such penalties in an unregulated labor market, such as the United States, in which unusually large fractions of work are performed at night and on weekends.

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  • Ana Rute Cardoso & Daniel S. Hamermesh & José Varejão, 2008. "The Timing of Labor Demand," UFAE and IAE Working Papers 759.08, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    • Handle: RePEc:aub:autbar:759.08
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    Cited by:

    1. Labanca, Claudio & Pozzoli, Dario, 2018. "Coordination of Hours within the Firm," Working Papers 7-2018, Copenhagen Business School, Department of Economics.
    2. Phil Lewis, 2014. "Paying the Penalty? The High Price of Penalty Rates in Australian Restaurants," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 21(1), pages 5-26.
    3. Daniel S. Hamermesh, 2021. "Do labor costs affect companies’ demand for labor?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-3, February.
    4. German Cubas & Chinhui Juhn & Pedro Silos, 2023. "Coordinated Work Schedules and the Gender Wage Gap," The Economic Journal, Royal Economic Society, vol. 133(651), pages 1036-1066.
    5. Freddy H. Castro & Ingrid Monroy, 2011. "Demanda laboral en la Banca Central: análisis de tendencias 2000-2009," Borradores de Economia 662, Banco de la Republica de Colombia.
    6. Serena Yu & David Peetz, 2019. "Non‐Standard Time Wage Premiums and Employment Effects: Evidence from an Australian Natural Experiment," British Journal of Industrial Relations, London School of Economics, vol. 57(1), pages 33-61, March.
    7. Labanca, Claudio & Pozzoli, Dario, 2022. "Hours Constraints and Wage Differentials across Firms," IZA Discussion Papers 14992, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    J23; J78;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)

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