California's Daily Overtime Penalty Effects Essay

668 WordsFeb 26, 20133 Pages
Author tried to emphasized how the California’s daily overtime penalty affects daily working time of men and women in three particular periods of time, 1973, 1985, and 1991 by using double and triple differences estimation. This analysis is important for one major reason, by analyzing California’s daily overtime penalty; we can gain a great understanding of labor market effects of overtime pay regulation. The author separated this article into nine sections, introduction, California’s Daily Overtime Law, theoretical background, data, estimation approach, basic result, result with control variables, implication, and conclusion. In the California’s daily overtime law, he mentioned that the overtime pay provisions of the federal Fair Labor Standards Act require the overtime workers must be paid time and a half for hours of work beyond forty in a given week. Unlike California’s daily overtime law, covered workers to received time and a half for hours worked more than eight hours in a given day. And there are some certain groups exempt from the state overtime regulation, such as agricultural workers, government workers, family workers, and on-site workers. Firms would respond by reducing the incidence of long workdays and shortening the workdays of workers who keep putting eight hours plus per day. California’s daily overtime penalty could possibly produce a substantial reduction in overtime work and a corresponding increase in prevalence of eight-hour workdays, or small or no effect on workdays, but these theoretical assumption need for empirical analysis. The author has compared with two groups, men and women, and divided these two groups into another two groups, California and Non-west in three particular periods. There is a comparison called difference in difference, to track outcomes for California men before and

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