According to Census and CPS data, the share of employed American men regularly working more than 48 hours per week is higher today than it was 25 years ago. Using CPS data from 1979 to 2006, we show that this increase was greatest among highly educated, highly-paid, and older men, was...

We study worker and firm behavior in an efficiency-wage environment where co-workers' wages may potentially influence a worker's effort. Theoretically, we show that an increase in workers' responsiveness to co-workers' wages should lead profit-maximizing firms to compress wages under quite...