Hours and productivity

A recent paper by John Pencavel of Stanford University suggests that companies should not focus on how many hours their employees are working but instead consider how to optimize their productivity. Pencavel notes that:

Profit-maximising employer will not be indifferent to the length of … working hours over a day or week

Indeed, data from the OECD shows that working longer hours results in a reduction of labour output per hour:

Relationship between hours worked and productiv

Source: World Economic Forum

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