NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Jose Varejao

Faculdade de Economia, Rua Roberto Frias
4200-464 Porto
Portugal

E-Mail: varejao@fep.up.pt

NBER Working Papers and Publications

December 2008The Timing of Labor Demand
with Ana Rute Cardoso, Daniel S. Hamermesh: w14566
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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