Effects of Working Hours Per Week on Wages

Xinzi Li

doi:10.62051/ijgem.v8n3.09

Authors

Xinzi Li

DOI:

https://doi.org/10.62051/ijgem.v8n3.09

Keywords:

Working hours, Wage determination, Nonlinear regression, Educational attainment, American Community Survey (ACS)

Abstract

This study examines the nonlinear relationship between working hours and wages using cross-sectional data from the American Community Survey (ACS), while accounting for variables such as age, gender, race, and language proficiency. By constructing three progressively expanded regression models, the findings reveal a significant positive correlation between working hours and wages, albeit with diminishing marginal returns. Additionally, age exhibits a concave relationship with wages, where earnings initially rise with age before plateauing. Educational attainment further moderates this relationship, with highly educated individuals benefiting more from additional work hours but also experiencing greater productivity losses due to overwork. The study also highlights persistent wage disparities based on gender and race, with female and non-white workers facing significant income gaps. The inclusion of quadratic terms improves model fit, providing empirical insights for labor market policy formulation.

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