View by Day

Come to visit CERGE-EI during our Open Week to find out more about our graduate study programs and experience the genuine atmosphere!

You will have a chance to get a first-hand experience with studying MA in Applied Economics or PhD in Economics. Use the opportunity to meet the current students cohort, graduates and staff members, and join us for an informal get-together.

Let us remind that the application deadline for PhD program is March 31 and that it is now also open to outstanding applicants with a BA degree (or equivalent). Deadline for Master in Applied Economics is November 30 (early deadline) and March 31.

To obtain the program for the week and participate, please fill in the registration form.

Dario Pozzoli, Ph.D.

Copenhagen Business School, Denmark

Authors: Claudio Labanca and Dario Pozzoli

Abstract: Although coworkers are spending an increasing share of their working time interacting with one another, little is known about how the coordination of hours among heterogenous coworkers affects pay, productivity and labor supply. In this paper, we use new linked employer-employee data on hours worked in Denmark to first document evidence of positive correlations between wages, productivity and the degree of hours coordination – measured as the dispersion of hours – within firms. We then estimate labor supply elasticities by exploiting changes made to the personal income tax schedule in 2010. We find that hours coordination is associated with attenuated labor supply elasticity and spillovers on coworkers not directly affected by the tax change. These spillovers led to a 15% increase in the marginal excess burden from the 2010 tax reform, and if ignored, they induce substantial downward bias in estimates of the labor supply elasticity. We explain these findings in a framework in which differently productive firms choose whether to coordinate hours in exchange for productivity gains, leading more productive firms to select into coordinating hours and to pay compensating wage differentials.

JEL Codes: J31, H20, J20

The seminar is co-financed by the European Union.

Full Text:   PAPER: “Coordination of Hours within the Firm”

                APPENDIX  here.