published in: Scottish Journal of Political Economy, 2005, 52 (2), 177-193
Why do people work unpaid overtime? We show that remarkable long-term labor earnings
gains are associated with unpaid overtime in West Germany. A descriptive analysis suggests
that over a 10-year period workers with unpaid overtime experience on average at least a 10
percentage points higher increase in real labor earnings than their co-workers. Applying
panel data models this result generally holds. Furthermore, we find some evidence for
gender specific differences with respect to the effects of unpaid overtime work. Our results
point to the importance of investment in current working hours beyond the standard work
week to enhance real earnings prospects.
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