The Decreasing Returns on Working Time: An Empirical Analysis on Panel Country Data

15 Pages Posted: 26 Jan 2011

See all articles by Gilbert Cette

Gilbert Cette

Banque de France

Samuel Chang

affiliation not provided to SSRN

Maty Konte

World Bank - International Finance Corporation (IFC)

Date Written: January 1, 2011

Abstract

An empirical analysis is conducted on two panels of 18 OECD countries to test whether the elasticity of hourly productivity to working time is negative and decreasing with working time itself. If so, the decreasing returns on working time could be indicative of a fatigue effect that increases with working time. We find that the elasticity of productivity per hour to working time is negative and decreasing with working time, but its coefficient is not strongly significant. This study offers empirical support for the hypothesis of a fatigue effect that increases with working time, but with some reservations.

Keywords: Productivity, Working time, decreasing returns

JEL Classification: J24, F01, O11, O47

Suggested Citation

Cette, Gilbert and Chang, Samuel and Konte, Maty, The Decreasing Returns on Working Time: An Empirical Analysis on Panel Country Data (January 1, 2011). Banque de France Working Paper No. 315, Available at SSRN: https://ssrn.com/abstract=1746857 or http://dx.doi.org/10.2139/ssrn.1746857

Gilbert Cette (Contact Author)

Banque de France ( email )

Paris
France

Samuel Chang

affiliation not provided to SSRN ( email )

Maty Konte

World Bank - International Finance Corporation (IFC) ( email )

2121 Pennsylvania Avenue, NW
Washington, DC 20433
United States

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