IDEAS home Printed from https://ideas.repec.org/p/cir/circah/2014n-11a.html
   My bibliography  Save this paper

Vacation Leave, Work Hours And Wages: New Evidence From Linked Employer-Employee Data

Author

Listed:
  • Ali Fakih

Abstract

This paper provides new evidence on the determinants of vacation leave and its relationship to hours worked and hourly wages by examining the case of Canada. Previous studies from the USA, using individual-level data, have revealed that annual work hours fall by around 53 hours for each additional week of vacation used. Exploiting a linked employer–employee dataset that allows to control for detailed observed demographic, job, and firm characteristics, we find instead that annual hours of work fall by only 29 hours for each additional week of vacation used. Our findings support the hypothesis that pressure at work may lead employees to use more vacation days but also causes them to work for longer hours.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Ali Fakih, 2014. "Vacation Leave, Work Hours And Wages: New Evidence From Linked Employer-Employee Data," CIRANO Papers 2014n-11a, CIRANO.
    • Handle: RePEc:cir:circah:2014n-11a
    as

    Download full text from publisher

    File URL: https://cirano.qc.ca/files/publications/2014N-11a.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
    2. John S. Heywood & W. Stanley Siebert & Xiangdong Wei, 2007. "The implicit wage costs of family friendly work practices," Oxford Economic Papers, Oxford University Press, vol. 59(2), pages 275-300, April.
    3. repec:ilo:ilowps:470847 is not listed on IDEAS
    4. Victor Chernozhukov & Ivan Fernandez-Val & Jinyong Hahn & Whitney K. Newey, 2008. "Identification and estimation of marginal effects in nonlinear panel models," CeMMAP working papers CWP25/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    5. Alberto Alesina & Edward Glaeser & Bruce Sacerdote, 2005. "Work and Leisure in the U. S. and Europe: Why so Different?," Harvard Institute of Economic Research Working Papers 2068, Harvard - Institute of Economic Research.
    6. Vasilios D. Kosteas, 2009. "Job level changes and wage growth," International Journal of Manpower, Emerald Group Publishing Limited, vol. 30(3), pages 269-284, June.
    7. Tony Fang & John S. Heywood, 2010. "Immigration, Ethnic Wage Differentials and Output Pay in Canada," British Journal of Industrial Relations, London School of Economics, vol. 48(1), pages 109-130, March.
    8. Francis Green, 1997. "Union Recognition and Paid Holiday Entitlement," British Journal of Industrial Relations, London School of Economics, vol. 35(2), pages 243-255, June.
    9. Edward C. Prescott, 2004. "Why do Americans work so much more than Europeans?," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 28(Jul), pages 2-13.
    10. Eldridge, Lucy P. & Pabilonia, Sabrina Wulff, 2007. "Are Those Who Bring Work Home Really Working Longer Hours? Implications for BLS Productivity Measures," Working Papers 406, U.S. Bureau of Labor Statistics.
    11. Vasilios D. Kosteas, 2011. "Job Satisfaction and Promotions," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(1), pages 174-194, January.
    12. Bell, Linda A. & Freeman, Richard B., 2001. "The incentive for working hard: explaining hours worked differences in the US and Germany," Labour Economics, Elsevier, vol. 8(2), pages 181-202, May.
    13. Mark Aguiar & Erik Hurst, 2007. "Measuring Trends in Leisure: The Allocation of Time Over Five Decades," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 969-1006.
    14. Eric Solberg & Teresa Laughlin, 1995. "The Gender Pay Gap, Fringe Benefits, and Occupational Crowding," ILR Review, Cornell University, ILR School, vol. 48(4), pages 692-708, July.
    15. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 257-298, National Bureau of Economic Research, Inc.
    16. Kevin Lang & Sumon Majumdar, 2004. "The Pricing Of Job Characteristics When Markets Do Not Clear: Theory And Policy Implications," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(4), pages 1111-1128, November.
    17. Rebitzer, James B & Taylor, Lowell J, 1995. "Do Labor Markets Provide Enough Short-Hour Jobs? An Analysis of Work Hours and Work Incentives," Economic Inquiry, Western Economic Association International, vol. 33(2), pages 257-273, April.
    18. Hwang, Hae-shin & Mortensen, Dale T & Reed, W Robert, 1998. "Hedonic Wages and Labor Market Search," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 815-847, October.
    19. Aaron Lowen & Paul Sicilian, 2009. "“Family-Friendly” Fringe Benefits and the Gender Wage Gap," Journal of Labor Research, Springer, vol. 30(2), pages 101-119, June.
    20. Nick Bloom & Tobias Kretschmer & John Van Reenen, 2011. "Are family-friendly workplace practices a valuable firm resource?," Strategic Management Journal, Wiley Blackwell, vol. 32(4), pages 343-367, April.
    21. Joseph G. Altonji & Emiko Usui, 2007. "Work Hours, Wages, and Vacation Leave," ILR Review, Cornell University, ILR School, vol. 60(3), pages 408-428, April.
    22. Torbjorn Hacgeland & Tor Jakob Klette, 1999. "Do Higher Wages Reflect Higher Productivity? Education, Gender and Experience Premiums in a Matched Plant-Worker Data Set," Contributions to Economic Analysis, in: The Creation and Analysis of Employer-Employee Matched Data, pages 231-259, Emerald Group Publishing Limited.
    23. Becker, Gary S, 1985. "Human Capital, Effort, and the Sexual Division of Labor," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 33-58, January.
    24. Matthew Gray & Jacqueline Tudball, 2004. "Family-friendly work practices: differences within and between workplaces," Labor and Demography 0405003, University Library of Munich, Germany.
    25. Mark Wooden & Diana Warren, 2007. "Paid Annual Leave and Working Hours," Melbourne Institute Working Paper Series wp2007n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    26. Tony Fang & Jelena Zikic & Milorad M. Novicevic, 2009. "Career success of immigrant professionals: stock and flow of their career capital," International Journal of Manpower, Emerald Group Publishing Limited, vol. 30(5), pages 472-488, August.
    27. George-Levi Gayle & Limor Golan & Robert A. Miller, 2012. "Gender Differences in Executive Compensation and Job Mobility," Journal of Labor Economics, University of Chicago Press, vol. 30(4), pages 829-872.
    28. Michael R. Pergamit & Jonathan R. Veum, 1999. "What is a Promotion?," ILR Review, Cornell University, ILR School, vol. 52(4), pages 581-601, July.
    29. Joseph Altonji & Jennifer Oldham, 2003. "Vacation laws and annual work hours," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 27(Q III), pages 19-29.
    30. Joanne Salop & Steven Salop, 1976. "Self-Selection and Turnover in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(4), pages 619-627.
    31. Johnson, Nancy Brown & Provan, Keith G., 1995. "The relationship between work/family benefits and earnings: A test of competing predictions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 24(4), pages 571-584.
    32. Geng Li, 2009. "Do constraints on market work hours change home production efforts?," Finance and Economics Discussion Series 2009-21, Board of Governors of the Federal Reserve System (U.S.).
    33. Joanne Salop & Steven C. Salop, 1976. "Self-selection and turnover in the labor market," Special Studies Papers 80, Board of Governors of the Federal Reserve System (U.S.).
    34. John M. Evans, 2002. "Work/Family Reconciliation, Gender Wage Equity and Occupational Segregation: The Role of Firms and Public Policy," Canadian Public Policy, University of Toronto Press, vol. 28(s1), pages 187-216, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Verena Lauber & Johanna Storck, 2016. "Helping with the Kids? How Family-Friendly Workplaces Affect Parental Well-Being and Behavior," SOEPpapers on Multidisciplinary Panel Data Research 883, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Uwe Jirjahn & Jens Mohrenweiser, 2021. "Works councils and organizational gender policies in Germany," British Journal of Industrial Relations, London School of Economics, vol. 59(4), pages 1020-1048, December.
    3. Ariane Pailhé & Anne Solaz, 2019. "Is there a wage cost for employees in family‐friendly workplaces? The effect of different employer policies," Gender, Work and Organization, Wiley Blackwell, vol. 26(5), pages 688-721, June.
    4. Ali Fakih, 2018. "What Determines Vacation Leave? The Role Of Gender," Bulletin of Economic Research, Wiley Blackwell, vol. 70(1), pages 1-19, January.
    5. Verena Lauber & Johanna Storck, 2016. "Helping with the Kids? How Family-Friendly Workplaces Affect Parental Well-Being and Behavior," Discussion Papers of DIW Berlin 1630, DIW Berlin, German Institute for Economic Research.
    6. Verena Lauber & Sarah Reiter & Johanna Storck, 2015. "Familienfreundlichkeit in Unternehmen - Status Quo in Deutschland und Forschungsstand," DIW Roundup: Politik im Fokus 77, DIW Berlin, German Institute for Economic Research.
    7. Laszlo Goerke & Sabrina Jeworrek, 2021. "Paid vacation use: The role of works councils," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 42(3), pages 473-503, August.
    8. Özgür Demirtaş & Aykut Arslan & Mustafa Karaca, 2019. "Why perceived organizational and supervisory family support is important for organizations? Evidence from the field," Review of Managerial Science, Springer, vol. 13(4), pages 841-869, August.
    9. Ana I. Moro Egido & Joaquin Naval & Jose I. Silva, 2023. "Part-time hours and wages," ThE Papers 23/06, Department of Economic Theory and Economic History of the University of Granada..
    10. Thomas Hofmarcher, 2021. "The effect of paid vacation on health: evidence from Sweden," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(3), pages 929-967, July.
    11. Jianwei Deng & Yuangeng Guo & Hubin Shi & Yongchuang Gao & Xuan Jin & Yexin Liu & Tianan Yang, 2020. "Effect of Discrimination on Presenteeism among Aging Workers in the United States: Moderated Mediation Effect of Positive and Negative Affect," IJERPH, MDPI, vol. 17(4), pages 1-19, February.
    12. Laszlo Goerke & Sabrina Jeworrek & Markus Pannenberg, 2015. "Trade union membership and paid vacation in Germany," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-26, December.
    13. Tekin Akgeyik, 2021. "Fazla Çalışmanın İşyükü ve İşgücü Belirleyicileri(Bir Şirketin Veri Seti Üzerine Ampirik Bir Araştırma)," Journal of Social Policy Conferences, Istanbul University, Faculty of Economics, vol. 0(80), pages 37-65, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ali Fakih & Pascal L. Ghazalian, 2013. "Female Labour Force Participation in MENA's Manufacturing Sector: The Implications of Firm-related and National Factors," CIRANO Working Papers 2013s-46, CIRANO.
    2. Ariane Pailhé & Anne Solaz, 2019. "Is there a wage cost for employees in family‐friendly workplaces? The effect of different employer policies," Gender, Work and Organization, Wiley Blackwell, vol. 26(5), pages 688-721, June.
    3. Peter Frase & Janet Gornick, 2009. "The Time Divide in Cross-National Perspective: The Work Week, Gender and Education in 17 Countries," LIS Working papers 526, LIS Cross-National Data Center in Luxembourg.
    4. Pinheiro, Roberto & Visschers, Ludo, 2015. "Unemployment risk and wage differentials," Journal of Economic Theory, Elsevier, vol. 157(C), pages 397-424.
    5. Mario Bossler & Philipp Grunau, 2020. "Asymmetric information in external versus internal promotions," Empirical Economics, Springer, vol. 59(6), pages 2977-2998, December.
    6. Behringer, Jan & Gonzalez Granda, Martin & van Treeck, Till, 2022. "Varieties of the rat race: Working hours in the age of abundance," ifso working paper series 17, University of Duisburg-Essen, Institute for Socioeconomics (ifso).
    7. Joseph G. Altonji & Emiko Usui, 2007. "Work Hours, Wages, and Vacation Leave," ILR Review, Cornell University, ILR School, vol. 60(3), pages 408-428, April.
    8. L. Bryan, Mark, 2006. "Paid holiday entitlements, weekly working hours and earnings in the UK," ISER Working Paper Series 2006-52, Institute for Social and Economic Research.
    9. Bonatti, Luigi, 2008. "Evolution of preferences and cross-country differences in time devoted to market work," Labour Economics, Elsevier, vol. 15(6), pages 1341-1365, December.
    10. Oh, Seung-Yun & Park, Yongjin & Bowles, Samuel, 2012. "Veblen effects, political representation, and the reduction in working time over the 20th century," Journal of Economic Behavior & Organization, Elsevier, vol. 83(2), pages 218-242.
    11. Sila, Urban, 2009. "Can family-support policies help explain differences in working hours across countries?," LSE Research Online Documents on Economics 28684, London School of Economics and Political Science, LSE Library.
    12. Yoram Weiss, 2009. "Work and Leisure: A History of Ideas," Journal of Labor Economics, University of Chicago Press, vol. 27(1), pages 1-20, January.
    13. Luigi Bonatti, 2007. "Evolution of preferences and cross-country differences in time devoted to market work," Department of Economics Working Papers 0719, Department of Economics, University of Trento, Italia.
    14. Oyer, Paul & Schaefer, Scott, 2011. "Personnel Economics: Hiring and Incentives," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 20, pages 1769-1823, Elsevier.
    15. Edward P. Lazear, 1995. "Personnel Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121883, April.
    16. Kuroda, Sachiko, 2010. "Do Japanese Work Shorter Hours than before? Measuring trends in market work and leisure using 1976-2006 Japanese time-use survey," Journal of the Japanese and International Economies, Elsevier, vol. 24(4), pages 481-502, December.
    17. Loukas Karabarbounis & Andrea Ichino & Alberto Alesina, 2008. "Gender based Taxation," 2008 Meeting Papers 500, Society for Economic Dynamics.
    18. Alberto Alesina & Andrea Ichino & Loukas Karabarbounis, 2011. "Gender-Based Taxation and the Division of Family Chores," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 1-40, May.
    19. Benoit Dostie, 2011. "Wages, Productivity and Aging," De Economist, Springer, vol. 159(2), pages 139-158, June.
    20. Emmanuel Saez & Manos Matsaganis & Panos Tsakloglou, 2012. "Earnings Determination and Taxes: Evidence From a Cohort-Based Payroll Tax Reform in Greece," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(1), pages 493-533.

    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cir:circah:2014n-11a. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Webmaster (email available below). General contact details of provider: https://edirc.repec.org/data/ciranca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.