NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Demand for Hours of Labor: Direct Evidence from California

Daniel S. Hamermesh, Stephen J. Trejo

NBER Working Paper No. 5973
Issued in March 1997
NBER Program(s):   LS

For many years California has required that most women receive time-and-a-half for hours of work beyond 8 in a given day. In 1980 this daily overtime penalty was extended to men. This change provides a unique opportunity to estimate the impact of an exogenous increase in the relative price of a marginal hour of labor on the demand for hours of work. Analyzing Current Population Survey data from 1973 and 1985, we find that the overtime penalty substantially reduced the amount of daily overtime worked by California men compared to men in other states and to women in California. Our estimates imply that the price elasticity of demand for overtime hours is at least -0.70.

download in pdf format
   (736 K)

email paper

This paper is available as PDF (736 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5973

Published: Hamermesh, Daniel S. and Stephen J. Trejo. "The Demand For Hours Of Labor: Direct Evidence From California," Review of Economics and Statistics, 2000, v82(1,Feb), 38-47. citation courtesy of

Users who downloaded this paper also downloaded these:
Card and Robins w5701 Do Financial Incentives Encourage Welfare Recipients to Work? Evidence from a Randomized Evaluation of the Self-Sufficiency Project
Hamermesh w3890 Labor Demand: What Do We Know? What Don't We Know?
Mincer Labor Force Participation of Married Women: A Study of Labor Supply
Clark and Freeman w0309 How Elastic is The Demand for Labor?
Ashenfelter and Rouse w6106 Income, Schooling, and Ability: Evidence from a New Sample of Identical Twins
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us