This paper uses Canadian matched employer-employee data to show that working hours are gross complements in production rather than perfect substitutes, as is typically assumed. We exploit within-establishment and individual-level variation in hours and wages to document novel evidence consistent...

Work hours mismatches among the employed are common. About 7 percent prefer fewer than their current work hours even if it means less income, while another 25 percent want more hours and income, virtually the same as in 1985. Overemployment is higher for women, whites, married, parents of young...