{"title":"Hours Constraints and Wage Differentials across Firms","authors":"Claudio Labanca, Dario Pozzoli","doi":"10.3368/jhr.0822-12479r1","DOIUrl":null,"url":null,"abstract":"<h3>Abstract</h3> Although constraints on hours worked at the firm-level are viewed as an important determinant of firm wages, little direct evidence exists to support this view. In this paper, we use linked employer-employee data on hours worked in Denmark to measure hours constraints and to investigate how these constraints relate to firm wages. We show that firms with stricter constraints pay higher firm-specific wages and that these premiums are concentrated in more productive firms. Starting from these findings we discuss a framework in which hours constraints are motivated by the productivity gains derived from having a more cooperative production process, leading more productive firms to constrain hours and to pay compensating wage differentials.","PeriodicalId":48346,"journal":{"name":"Journal of Human Resources","volume":"183 4","pages":"0"},"PeriodicalIF":5.3000,"publicationDate":"2023-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Human Resources","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.3368/jhr.0822-12479r1","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Although constraints on hours worked at the firm-level are viewed as an important determinant of firm wages, little direct evidence exists to support this view. In this paper, we use linked employer-employee data on hours worked in Denmark to measure hours constraints and to investigate how these constraints relate to firm wages. We show that firms with stricter constraints pay higher firm-specific wages and that these premiums are concentrated in more productive firms. Starting from these findings we discuss a framework in which hours constraints are motivated by the productivity gains derived from having a more cooperative production process, leading more productive firms to constrain hours and to pay compensating wage differentials.
期刊介绍：
The Journal of Human Resources is among the leading journals in empirical microeconomics. Intended for scholars, policy makers, and practitioners, each issue examines research in a variety of fields including labor economics, development economics, health economics, and the economics of education, discrimination, and retirement. Founded in 1965, the Journal of Human Resources features articles that make scientific contributions in research relevant to public policy practitioners.
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