Fringe Benefits and Overtime as Barriers to Expanding Employment

The Impact of the Overtime Premium on Employment and Hours in U.S. Industry

“…This survey provided the best available source of information on overtime hours, employment, and employer expenditures for 1. Garbarino [4] was one of the first to consider the economic impact of these costs. That they have been steadily increasing as a percentage of total labor costs over the post-war period, is indicated in [ Tables 1 and 2 present, for each two-digit manufacturing industry and for major nonmanufacturing industry groups, the mean and intraindustry standard deviation of observed annual overtime per man in 1966, calculated for the establishments in the sample.…”

“…That they have been steadily increasing as a percentage of total labor costs over the post-war period, is indicated in [ Tables 1 and 2 present, for each two-digit manufacturing industry and for major nonmanufacturing industry groups, the mean and intraindustry standard deviation of observed annual overtime per man in 1966, calculated for the establishments in the sample. 4 In most cases the intraindustry variation is substantial, and the coefficient of variation varies across industries. This implies that cross-section regressions that use industry mean values as the units of observation, such as those found in Rosen [7] and Van Atta [8], may obscure the underlying relationships.…”

Modelling Labour Demand: The Role of Economics

“…For example, it became clear in subsequent work that the point* b had been assumed to be fixed in the original empirical work and yet, the institutional interpretation indicates quite clearly that b should move to the left as normal hours of work, H N , are reduced [14]. Again, in subsequent work, it also became clear that because of the existence of "quasi-fixed labour costs" (i.e., costs that vary with the number of employees and not with hours of work), the minimum point, b, will not occur at normal hours [15]. Such factors as lump-sum National Insurance Contributions will tend to make H* > H N and give rise to the possibility of permanent overtime working.…”

The effect of costs and constraints on the optimum employment combination of full-time and part-time faculty at urban community colleges

“…While most research has made assumptions concerning the actual amount of these "fixed costs" of employment, the Conference Board Record (Myers 1967) Garbarino (1964) examined the impact of certain non-wage costs, or fringe benefits, on the decision-making process surrounding the use of overtime as a substitute for new employees. His results suggest that fringe benefits are not a barrier to expanding employment, although Garbarino (1964Garbarino ( , 1966 and MacDonald (1966) Rosen (1968) also examined the impact of fixed costs on specific labor markets. In the labor market he studied, the labor hour variation is higher among those occupations which have higher fixed costs.…”