Impact of overtime regulations on wages and work hours

Kuroda, Sachiko, and Yamamoto, Isamu-Impact of overtime regulations on wages and work hours Exploiting an ambiguity in the criteria regarding which employees are exempt from overtime regulations in Japan, this paper used the longitudinal data of Japanese employees to examine whether overtime regulations have an impact on hourly wages and hours worked. We found that although the differences between the hourly wages of the exempt and non-exempt employees were negligible, the hours worked by exempt employees were longer, especially for non-university graduates during the recessionary period. We interpreted that the fixed-wage model, rather than the fixed-job model, was prevalent during the recession period, especially for workers with low bargaining power. J. Japanese Int. Economies 26 (2) (2012) 249-262. Waseda University, Faculty of Education and Integrated Arts and Sciences, 1-6-1 Nishiwaseda Shinjukuku, Tokyo, japan; Keio University, Faculty of Business and Commerce, 2-15-45-502 Mita Minato-ku, Tokyo, Japan. (C) 2012 Elsevier Inc. All rights reserved.