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Research ArticleArticles

Fixed Costs and Hours Constraints

William R. Johnson
Journal of Human Resources, October 2011, 46 (4) 775-799; DOI: https://doi.org/10.3368/jhr.46.4.775
William R. Johnson
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Abstract

Hours constraints are typically identified by worker responses to questions asking whether they would prefer a job with more hours and more pay or fewer hours and less pay. Because jobs with different hours but the same rate of pay may be infeasible when there are fixed costs of employment or mandatory overtime premia, the constraint in those cases may be illusory. Cross-section estimates of reported hours constraints are consistent with this model implying that the overall level of hours constraints may exaggerate the extent to which the labor market is characterized by frictions and imperfections.

  • Received June 2010.
  • Accepted November 2010.
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Journal of Human Resources
Vol. 46, Issue 4
2 Oct 2011
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Fixed Costs and Hours Constraints
William R. Johnson
Journal of Human Resources Oct 2011, 46 (4) 775-799; DOI: 10.3368/jhr.46.4.775

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Fixed Costs and Hours Constraints
William R. Johnson
Journal of Human Resources Oct 2011, 46 (4) 775-799; DOI: 10.3368/jhr.46.4.775
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  • Article
    • Abstract
    • I. Introduction
    • II. Background
    • III. Hours Constraints
    • IV. Empirical Tests
    • V. Conclusion
    • Appendix
    • Footnotes
    • References
  • Figures & Data
  • Info & Metrics
  • References
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