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By J K Galbraith

ISBN-10: 1560006749

ISBN-13: 9781560006749

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Extra resources for American Capitalism: The Concept of Countervailing Power

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Pannenberg and Wagner (2001) examine the ways in which various overtime patterns influenced the evolution of monthly earning distributions in Britain and West Germany during the 1990s. Based on data from the GSOEP and BHPS, they estimate linear regressions in which the dependent variable is the individual percentile in the earnings distribution in year t. Explanatory variables cover types of overtime compensation as well as a wide range of other controls. Using the individual-based regression estimates, earnings mobility tables are predicted for different patterns of overtime incidence and compensation.

It is shown that where the parties reach long-term agreements over the length of a job and its associated wage earnings – with hours in effect being treated as indivisible – they will simply act to offset changes in mandated rules through the mechanism of flexible standard hourly wage rates. Once employee/employer wage-hours preferences are jointly satisfied, working time policy effectiveness is essentially eliminated. Overtime hours in most of these foregoing developments are remunerated at a premium rate of hourly pay.

G. g. the United Kingdom). In the unregulated UK economy, the average overtime premium is acyclical. There is international evidence that the overtime premium is invariant to the number of weekly overtime hours. At the macro level, studying the cyclical behaviour of average hourly earnings requires wage decomposition into the standard hourly wage, the overtime wage and the proportion of employees working overtime. Professional and managerial workers in Germany and the United Kingdom report that they work significant numbers of unpaid weekly overtime hours.

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American Capitalism: The Concept of Countervailing Power by J K Galbraith

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