Overtime working, the Phillips curve and the wage curve: British engineering, 1926-66

Citation

Hart RA (2003) Overtime working, the Phillips curve and the wage curve: British engineering, 1926-66. Manchester School, 71 (2), pp. 97-112. https://doi.org/10.1111/1467-9957.00338

Abstract
This paper shows that wage-unemployment elasticities derived from estimated wage curves and Phillips curves may be critically dependent on the measurement of wages. Incorporating hourly wage earnings, that include the influence of overtime payments, can lead to seriously distorted results. Meaningful elasticities are obtained only if hourly standard wages form the basis of analysis. Work is based on a unique data set describing two homogeneous blue-collar occupational groups - skilled fitters and unskilled labourers - in the British engineering industry. Each group is also divided into timeworkers and piece-rate workers. Data are aggregated into a panel of 28 local labour markets and cover the highly contrasting periods, 1928-1938 and 1954-1966.

Keywords
Overtime, Phillips Curve, Wage Curve, Engineering; Wages Measurement Elasticity; Wage differentials Case studies; Skilled labor Wages and labor productivity; Unskilled labor Wages and labor productivity

Journal
Manchester School: Volume 71, Issue 2