The Fringe Barrier Hypothesis and Overtime Behavior: Comment

MacDonald, Robert M.
July 1966
Industrial & Labor Relations Review;Jul66, Vol. 19 Issue 4, p562
Academic Journal
The article comments on an article by Joseph Garbarino which examined the fringe barrier theory. The theory states the increasing cost of fringe benefits had encouraged the greater use of overtime work. In testing the theory, Garbarino compares the cost of reaching an increase in man-hour requirement by working present employees overtime with cost of adding new employees. Garbrino's estimates of cost differential between fringe benefits and overtime vary widely depending on the assumptions one makes in determining fringe costs such as the cost of unemployment insurance.


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