Title: Why do people work overtime hours? Paid and unpaid overtime working in the Netherlands and Germany Woliweb research meeting 23 june 2006
1 Why do people work overtime hours? Paid
and unpaid overtime working in the Netherlands
and Germany Woliweb research meeting 23 june
2006
Amsterdam Institute for Advanced Labour
Studies Universiteit van Amsterdam
2Employer 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)
3Employee-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)
4Who has overtime hours
- men more overtime than women15-24 yrs
low-skilled more paid overtime45-54 yrs
skilled more unpaid overtimelittle overtime for
lone parents (Duchesne, CAN, 1997) - men newcomers work overtime, leavers dont
(Bockerman, FIN, 2002) - empirical evidence to what extent overtime is
employer- or employee-driven is lacking
5Hypotheses
- 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
6Detailing 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)
7Overtime decisions
- Overtime decisions
- employer-demanded with and without
employee-refusal - voluntary employee decision, with and without
employer-demand
8WageIndicator 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
9What 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
10What overtime arrangements apply
11Working overtime hours (gt1 hr per week)
12Overtime 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
13Conclusions 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
14Conclusions 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
15Employee driven overtime NL(logistic regression)
16Employee driven overtime DE
17Employer driven overtime NL
18Employer driven overtime DE