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titel

VIEWS: 3 PAGES: 18

									     Why do people work
        overtime hours?

Paid and unpaid overtime working
  in the Netherlands and Germany

     Woliweb research meeting 23 june 2006




                                      Kea Tijdens
                            Amsterdam Institute for
                            Advanced Labour Studies
 AIA S                       Universiteit van Amsterdam   1
             Employer driven overtime

• extended hours mostly employer-driven
  (Peetz, AUS, 2003)
• unemployment rates decrease overtime;
  current level of production increase
  overtime, yet not the expected level
  (Kraft, GER, 1989)
• firm size positively related to overtime
  (Duchesne, CAN, 1997)


                                             2
     AIA S
           Employee-driven overtime

• interactions of private and on-the-job use of
  computers increase unpaid overtime
  (Hubler, GER, 2000)
• workplace culture important; employees
  internalise overtime pressure
  (Peetz, AUS, 2003)
• skilled workers more overtime than
  unskilled
  (Bauer and Zimmerman, GER, 1999)

                                                  3
       AIA S
              Who has overtime hours


• men more overtime than women;
  15-24 yrs & low-skilled more paid overtime;
  45-54 yrs & skilled more unpaid overtime:
  little overtime for lone parents
  (Duchesne, CAN, 1997)
• men + newcomers work overtime,
  leavers don’t (Bockerman, FIN, 2002)
• empirical evidence to what extent overtime is
  employer- or employee-driven is lacking


                                                  4
      AIA S
                         Hypotheses

• Employer-driven: overtime depend on
  – workforce size, i.e. full-time and part-time
    staffing levels
  – the incidence, duration and predictability of peak
    demand periods
• Employee-driven: overtime depend on
  –   the need for sufficient income
  –   the wish to obtain promotion
  –   to get the work done
  –   to keep jobs in case of downsizing

                                                         5
        AIA S
        Detailing overtime

• Overtime payment
 – premium-paid overtime
 – paid overtime
 – overtime compensated by time-off
 – uncompensated overtime
• Employee-level performance measure
 – output driven (salaried workers)
 – hours-driven (hourly paid workers)

                                        6
    AIA S
         Overtime decisions

• Overtime decisions
  – employer-demanded with and without
    employee-refusal
  – voluntary employee decision, with and
    without employer-demand




                                            7
     AIA S
         WageIndicator data selection
• countries en releases selected:
  – Germany (DE) and Netherlands (NL)
  – for release 1-6 (sept04-mar06)
• selection-1:
  – employees, excluding self-employed etc.
• selection-2:
  – working hours agreed with employer
                        DE          NL
  – not agreed          5%          4%
  – agreed in writing   88%         85%
  – agreed verbally     7%          11%
• number of observations (unweighted)
  – DE     41,326
  – NL     47,749
                                              8
      AIA S
             What working hours are agreed


                             DE     NL
1 Full-time hours per week   89%    74%
2 Part-time hours per week    8%    23%
3 Annualised hours            2%     1%
4 Flexible hours              1%     2%
6 I work on call              0%     0%
7 Other                       0%     0%
Total                        100%   100%




                                             9
          AIA S
       What overtime arrangements apply

100%                                    8 Not applicable


                                        7 I don't know
80%


                                        6 Flexible hours/on
                                        call/annualised hrs
60%
                                        5 Not compensated


40%                                     4 Partly paid, partly compen
                                        sated with time-off in lieu

                                        3 Time-off in lieu for overtime
20%
                                        hours

                                        2 Overtime paid as normal
                                        hours
 0%
        276 Germany   528 Netherlands   1 Overtime paid as normal
                                        hours plus overtime premium
                                                                          10
       AIA S
          Working overtime hours
          (>=1 hr per week)
100
                                  276 Germany

                                  528 Netherlands
80



60



40



20



 0
      0       1-4   5-9   10-14          15-19      >=20

                                                           11
      AIA S
                Overtime and payment

• defining hourly paid workers:
  – paid overtime with bonus & without bonus
  – overtime time-compensated
• defining salaried workers:
  – unpaid overtime
• frequencies                    DE            NL
  – 1 overtime and salaried      4.2%          5.8%
  – 2 overtime and hourly paid   8.7%          17.2%
  – 3 no overtime                87.2%         76.9%
  – Total                        100%          100%

                                                       12
      AIA S
        Conclusions 1
• age
  – NL + DE old age groups perform more paid and more
    unpaid overtime
• education
  – NL + DE higher educated perform more unpaid overtime
    compared to lower educated
  – NL + DE as for paid overtime very little differences
    across education groups
• gender & children
  – NL + DE males with children perform the most overtime
• household income
  – NL + DE unpaid overtime increases with income
  – paid overtide decreases with income
• partner
  – NL + DE unpaid overtime does not depend on partner
  – NL + DE paid overtime more often when partner           13
   AIA S
       Conclusions 2
• industry
  – NL + DE very few differences across industry
    (4 cat), least in agri/manufact/construction
• collective agreement
  – NL + DE less unpaid overtime when covered,
    paid overtime not affected by coverage
  – NL + DE as for paid overtime very little
    differences across education groups
• firmsize
  – NL + DE in smaller firms more unpaid overtime
  – NL in smaller firms more paid overtime


                                                    14
   AIA S
                 Employee driven overtime NL
                 (logistic regression)

                                        OVERTIME                   UNPAID OVERTIME PAID OVERTIME
                                        B           t-val   Sig.   B           t-val   Sig.   B           t-val   Sig.
Age REF >=50 yr
< 30 yr                                     -0.35      -7.50 ***       -0.24      -3.01 ***       -0.34      -6.56 ***
30-39                                       -0.15      -3.48 ***       0.00        0.05 ns        -0.20      -3.98 ***
40-49                                       -0.12      -2.67 **        -0.19      -2.39 **        -0.08      -1.49 ns
Education REF 5 tertiary edu
1 basic education + no education            -0.49      -4.22 ***       -0.92      -4.09 ***       -0.20      -1.55 ns
2 lower sec or 2nd stage of basic edu       -0.29      -7.42 ***       -0.80    -11.70 ***        0.01        0.25 ns
3 upper secondary education                 -0.11      -2.09 *         -0.45      -4.96 *         0.09        1.52 ns
4 post-secondary non-tertiary edu           -0.19      -6.36 ***       -0.71    -13.78 ***        0.09        2.61 **
Gender&Children REF female, childhome
1 male, no childhome                        -2.07     -52.11 ***       -0.93    -14.10 ***        -2.14     -47.28 ***
2 female, no childhome                      -1.17     -33.09 ***       -0.58      -9.44 ***       -1.08     -28.88 ***
3 male, childhome                           -2.20     -55.09 ***       -0.74    -11.85 ***        -2.43     -51.08 ***
Household income in cat (1-22)              -0.01      -1.95 ns        0.03        5.03 ***       -0.02      -5.95 ***
Partner                                     0.30        9.10 ***       0.03        0.47 ns        0.37       10.14 ***
Constant                                    0.26        4.29 ***       -1.97    -20.12 ***        -0.24      -3.63 ***




                                                                                                                         15
            AIA S
                    Employee driven overtime DE


DE                                      OVERTIME                   UNPAID OVERTIME            PAID OVERTIME
                                        B           t-val   Sig.   B           t-val   Sig.   B           t-val   Sig.
Age REF >=50 yr                                                                                                         0.00
< 30 yr                                     -0.38      -5.93 ***       -0.24      -2.38 **        -0.41      -5.39 ***
30-39                                       -0.27      -5.05 ***       -0.22      -2.62 **        -0.27      -4.15 ***
40-49                                       -0.05      -0.99 *         -0.22      -2.50 **        0.03        0.50 ns
Education REF 5 tertiary edu
1 basic education + no education            -0.28      -4.56 ***       -1.04      -9.18 ***       0.18        2.55 **
2 lower sec or 2nd stage of basic edu       -0.26      -5.82 ***       -0.85    -11.49 ***        0.14        2.56 **
3 upper secondary education                 -0.20      -3.81 ***       -0.78      -8.62 ***       0.19        2.98 ***
4 post-secondary non-tertiary edu           -0.13      -2.61 **        -0.61      -7.43 ***       0.21        3.45 ***
Gender&Children REF female, childhome
1 male, no childhome                        -1.62     -33.37 ***       -0.99    -12.04 ***        -1.66     -30.11 ***
2 female, no childhome                      -1.37     -25.89 ***       -0.87      -9.62 ***       -1.35     -22.61 ***
3 male, childhome                           -1.67     -33.05 ***       -0.93    -11.04 ***        -1.76     -30.37 ***
Household income in cat (1-22)              -0.02      -4.17 ***       0.00        0.06 ns        -0.02      -5.09 ***
Partner                                     0.20        4.54 ***       0.07        1.03 ns        0.25        4.77 ***
Constant                                    -0.14      -1.71 **        -1.64    -12.40 ***        -0.84      -8.55 ***




                                                                                                                               16
                AIA S
                       Employer driven overtime NL
NL                                            OVERTIME                       UNPAID OVERTIME                PAID OVERTIME
                                               B           t val      Sig.   B           t val       Sig.   B           t val      Sig.
Age REF >=50 yr
< 30 yr                                            -0.31      -6.13 ***          -0.31       -3.66 ***          -0.26     -4.73 ***
30-39                                              -0.08      -1.74 ns           -0.05       -0.64 ns           -0.09     -1.76 ns
40-49                                              -0.10      -2.09 *            -0.21       -2.53 **           -0.05     -0.86 ns
Education REF 5 tertiary edu
1 basic education + no education                   -0.35      -2.86   **         -1.24       -4.81   ***        0.09        0.68   ns
2 lower sec or 2nd stage of basic edu              -0.22      -5.34   ***        -0.96      -12.63   ***        0.15        3.12   **
3 upper secondary education                        -0.06      -1.01   ns         -0.54       -5.55   ***        0.20        3.20   **
4 post-secondary non-tertiary edu                  -0.18      -5.53   ***        -0.82      -14.72   ***        0.15        4.03   ***
Gender&Children REF female, childhome
1 male, no childhome                               -1.81    -40.11    ***        -0.95      -12.65   ***        -1.81    -35.19    ***
2 female, no childhome                             -1.14    -30.75    ***        -0.61       -9.32   ***        -1.05    -26.50    ***
3 male, childhome                                  -1.89    -41.30    ***        -0.74      -10.22   ***        -2.04    -37.71    ***
Household income in cat (1-22)                      0.00     -0.06    ns          0.03        4.74   ***        -0.01     -3.59    ***
Partner                                             0.26      7.72    ***         0.00        0.03   ns          0.34      8.83    ***
Firmsize REF >500
1 < 100                                             0.28       7.75   ***         0.40        6.18   ***         0.19      4.63    ***
2 100-500                                           0.18       4.34   ***         0.29        4.01   ***         0.10      2.18    *
caocover3                                          -0.06      -2.29   *          -0.22       -4.77   ***         0.03      0.96    ns
depmale                                            -0.31      -9.48   ***        -0.02       -0.41   ns         -0.37    -10.12    ***
Industry REF 4 public sector, health, education
1 agricult, industry building                      -0.50    -11.81    ***         0.19        2.58   *          -0.69    -14.30    ***
2 trade, transport, hospitality                    -0.29     -7.24    ***         0.24        3.38   **         -0.43     -9.73    ***
3 commercial services                              -0.35     -9.54    ***         0.11        1.74   ns         -0.46    -11.34    ***
Constant                                            0.29      3.92    ***        -2.08      -16.46   ***        -0.20     -2.36    ***




                                                                                                                                          17
           AIA S
                       Employer driven overtime DE
DE                                            OVERTIME                       UNPAID OVERTIME                PAID OVERTIME
                                               B           t val      Sig.   B           t val       Sig.   B           t val      Sig.
Age REF >=50 yr
< 30 yr                                            -0.32      -4.96 ***          -0.24       -2.29 *            -0.34     -4.33 ***
30-39                                              -0.21      -3.77 ***          -0.22       -2.48 *            -0.18     -2.77 **
40-49                                              -0.01      -0.10 ns           -0.21       -2.29 *             0.09      1.39 ns
Education REF 5 tertiary edu
1 basic education + no education                   -0.22      -3.44   ***        -1.05       -8.99   ***        0.27        3.58   ***
2 lower sec or 2nd stage of basic edu              -0.27      -5.76   ***        -0.92      -11.95   ***        0.16        2.85   **
3 upper secondary education                        -0.21      -3.88   ***        -0.84       -8.90   ***        0.20        2.98   **
4 post-secondary non-tertiary edu                  -0.14      -2.70   **         -0.66       -7.84   ***        0.23        3.57   ***
Gender&Children REF female, childhome
1 male, no childhome                               -1.48    -28.88    ***        -0.86       -9.99   ***        -1.53    -26.11    ***
2 female, no childhome                             -1.34    -24.83    ***        -0.82       -8.91   ***        -1.34    -21.90    ***
3 male, childhome                                  -1.52    -28.41    ***        -0.78       -8.78   ***        -1.63    -26.36    ***
Household income in cat (1-22)                     -0.01     -1.96    ns          0.01        2.22   *          -0.02     -3.99    ***
Partner                                             0.16      3.61    ***         0.02        0.21   ns          0.23      4.26    ***
Firmsize REF >500
1 < 100                                             0.20       4.90   ***         0.53        7.61   ***         0.01      0.11    ns
2 100-500                                           0.13       2.88   **          0.28        3.60   ***         0.04      0.75    ns
caocover3                                           0.07       2.44   *          -0.09       -1.95   ns          0.15      4.59    ***
depmale                                            -0.20      -5.34   ***        -0.13       -2.06   *          -0.22     -4.77    ***
Industry REF 4 public sector, health, education
1 agricult, industry building                      -0.46      -9.61   ***        -0.20       -2.51   *          -0.51     -9.23    ***
2 trade, transport, hospitality                    -0.25      -4.49   ***         0.25        2.72   ***        -0.45     -6.90    ***
3 commercial services                              -0.31      -6.29   ***         0.01        0.08   ns         -0.42     -7.34    ***
Constant                                           -0.13      -1.34   ns         -1.98      -12.62   ***        -0.68     -6.00    ***




                                                                                                                                          18
           AIA S

								
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