Kea Tijdens

1. Why do people work overtime hours? Paid and unpaid overtime working in the Netherlands and GermanyWoliweb research meeting 23 june 2006 Kea Tijdens Amsterdam Institute for Advanced Labour Studies Universiteit van Amsterdam

2. 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)

3. 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)

4. 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

5. 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

6. 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)

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

8. 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

9. What working hours are agreed

10. What overtime arrangements apply

11. Working overtime hours (>=1 hr per week)

12. 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%

13. 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

14. 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

15. Employee driven overtime NL(logistic regression)

16. Employee driven overtime DE

17. Employer driven overtime NL

18. Employer driven overtime DE