Manufacturing Earnings and Cycles: New Evidence

of 40 weekly hours and, as mentioned previously, this is how we define overtime
workers, that is

where λ_t is the proportion of workers working overtime at time t. Then, H^s in
(A7), the number of standard hours worked by non overtime workers is given
by

Further, V in (A7) is given by

(AU)

The RHS of (A7) decomposes A into the contributions of total and overtime
workers. To differentiate explicitly between workers working overtime and
those working only standard hours while retaining A, we re-express real earn-
ings as a geometric instead of an arithmetic average; thus our equation (8) in
the text

A* = E^^tW_t¹~^λt                       (A12)

where, E is average hourly earnings of overtime workers and W and ʌ are
defined in (A8) and (A9), respectively. Additionally, given FLSA regulations,
E can be expressed in terms of (9) and (10) as in the main text, with V defined
in (All).

All employment, hours and earnings data are from the BLS Establishments
Survey. The proportion of employees working greater than 40 hours per week
are unpublished annual figures from the BLS Current Population Survey. The
index of industrial production and price data are from the Federal Reserve
Board and the BLS respectively.²⁵

in their manufacturing job. We note that, while dual job holding is generally an important
phenomenon, it is clear from the breakdowns of rates of dual job holding provided by Paxson
and Sicherman (1996) that manufacturing occupations tend to exhibit below-average rates.

²⁵The producer price index is for all commodities and the consumer price index is for

28

<<   25   26   27   28   29   30   31   >>

More intriguing information