The Influence of the Timing of Work on Effort

This paper investigates work effort using novel air pressure data from compressed air machinery which moved directly with effort in a large manufacturing plant. Work effort is found to vary by shift, and standard shift differentials do not fully compensate for the disutility of non-standard hours, resulting in workers reducing their effective labor supply by exerting less effort to reach equilibrium. This documents a labor adjustment mechanism without resorting to job separation or renegotiation. Work effort, and thus productivity, is also found to vary inversely with macroeconomic conditions even in the absence of layoff.