OVERTIME PAY, OVERTIME HOURS, AND LABOR UNIONS

This article analyzes the effect of labor unions on overtime compensat ion and overtime hours. Estimates from May 1985 Current Population Sur vey data indicate that unionization increases the prevalence of premiu m pay for overtime and reduces the incidence and extent of overtime ho urs. Along with the finding of previous research that unionized worker s are more susceptible to temporary layoffs, these results are consist ent with a model in which unions use overtime pay to stabilize working hours and expand membership.