The Timing of Labor Demand
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.
We thank Thomas Bauer, Raja Junankar, Luca Nunziata and participants at seminars at several universities and IZA for helpful comments, and the Barcelona GSE Research Network, the Government of Catalonia, the IZA and the University of Texas at Austin for financial support. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
Ana Rute Cardoso & Daniel S. Hamermesh & José Varejão, 2012. "The Timing of Labor Demand," Annals of Economics and Statistics, . citation courtesy of