An Analysis of the Overtime Decision

Abstract

Recently, there has been considerable interest in the EEC in overtime working. In these times of high unemployment, some commentators have suggested that a reduction in overtime working could lead to job creation. This study attempts to look at reasons for overtime working as seen by management and to assess the potential for a reduction in overtime working in a policy of work sharing. It is in two parts, the first gives a summary of the results of a national level sample survey among managers of firms in the Republic of Ireland while the second part describes the use of a simulation model to test decisions relating to overtime working in an engineering job shop in the United Kingdom. The two sections complement one another and give insights into the behaviour of managers in relation to overtime working. It should be noted that the views of workers or of legislators are not reported. The views of workers would, of course, be very important in relation to the possibility of the successful implementation of a policy of reduced overtime working.