Germany experienced an even deeper fall in GDP in the Great Recession than the United States, with little employment loss. Employers' reticence to hire in the preceding expansion, associated in part with a lack of confidence it would last, contributed to an employment shortfall equivalent to 40...

After describing qualitatively the increasingly flexible organization of work hours in Germany, I turn to the German Socio-Economic Panel to quantify practices and trends, and assess their effects on workers and employers. Measuring flexibility as the extent to which overtime is compensated with...