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The Demand for Hours of Labor: Direct Evidence from California

Daniel S. Hamermesh1,2; Stephen J. Trejo2

1 National Bureau of Economic Research · 2 The University of Texas at Austin

The Review of Economics and Statistics 2000

California's longstanding requirement that most women receive time-and-a-half pay for workhours beyond eight in one day was extended to men in 1980. Analyzing Current Population Survey data from 1973, 1985, and 1991, we find that this overtime penalty substantially reduced the amount of daily overtime worked by California men relative to men in other states. Comparisons that use women to control for California-specific shocks show even stronger effects. The estimates imply a price elasticity of demand for overtime hours of at least 20.5.

DOI
10.1162/003465300558614
Volume
82 (1)
Pages
38-47
Language
en
Export
BibTeX
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