Skip to main content
padlock icon - secure page this page is secure

A panel data analysis of the effects of wages, standard hours and unionization on paid overtime work in Britain

Buy Article:

$47.00 + tax (Refund Policy)


This study examines the effects of the basic wage rate, standard working hours and unionization on paid overtime work in Britain by using individual level data from the New Earnings Survey over the period 1975–2001. For this purpose we estimate a panel data model. We show that to obtain consistent estimates it is important to allow for both the censoring of paid overtime hours at 0 and for correlations between the explanatory variables and unobserved individual-specific effects. The main empirical results are that a reduction in standard hours increases both the incidence of overtime and overtime hours, whereas an increase in the wage rate decreases the incidence of overtime but brings a small increase in overtime hours for those working overtime. For men the effects are stronger than for women. Union coverage is of minor empirical importance. The occupation and industry structure of employment has shifted from high to lower overtime jobs. Taken together, these economic variables can explain almost half of the changing incidence of overtime for men, and most of the change in overtime hours worked by women, but are less successful in explaining the changes in overtime hours worked by men or the incidence of overtime for women.
No References
No Citations
No Supplementary Data
No Article Media
No Metrics

Keywords: Censoring; Overtime work; Panel data

Document Type: Research Article

Affiliations: 1: Tilburg University, the Netherlands 2: University of Oxford, UK

Publication date: 01 January 2005

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more