N EW estimates of hours and earnings indicate greater declines in hours of work and greater increases in hourly earnings the past half century than the usually used, currently available historical series show. The new estimates presented in this paper are hours of work per week in the manufacturing, railroad, bituminous, and anthracite coal mining industries, as well as hourly earnings and hourly compensation in the latter three industries. The purpose in presenting the new hours and earnings series is threefold. (1) For historical data on hours and earnings, economists generally refer to the series published by the Bureau of Labor Statistics.' The conceptual basis underlying the calculation of the Bureau's series is one of total time paid for. For the researcher who is interested in problems relating to long-run changes in the hours of work, the introduction in recent years of such practices as paid vacations, paid holidays, or payment travel time gives an upward bias to an hours-per-week series when measured on a total time paid for basis. Since these practices provide additional earnings, division by the additional hours paid for, according to the total time paid for concept, tends to cancel out these gains and thus leads to understatement of the historical increase in hourly earnings. The new series attempt to correct these biases by deducting the time accounted by these practices from the measured hours both in the calculation of hours of work per week and in the calculation of hourly earnings. (2) The new series provide annual data continuously from 1900 through 1957, thus supplying information time periods since 1900 that are not covered by the Bureau's series (Tables 1 and 2 below). (3) The comprehensive review of the historical evidence on hours of work, which was undertaken in constructing the new series, suggests that the level of the Bureau's oft-used manufacturing series is in error during the 1920's. In 1929, a bench mark year the manufacturing series presented in this paper, the new estimate of hours of work per week is 48.0; the level of the Bureau's series is 44.2 hours. The construction of the hourly compensation series extends to three more industries the compensation concept developed by Rees manufacturing, to take account of the increasing importance to employees of employer contributions to such programs as pension plans and social insurance.2 Total hourly compensation is the sum of these wage supplement payments and the direct wage payments to workers measured by average hourly earnings. The employee coverage of the new series is identical to that of the Bureau's historical series. Except the railroad series, employee coverage is limited to production workers. The employee coverage of the railroad series is somewhat broader, including all wage and salary workers except the upper echelon of management which is classified as officials, and staff 3 Tables 1 (hours) and 2 (earnings and compensation) below present the new series together with, comparative purposes, the currently official historical series of the Bureau of * This paper is adapted from Chapter II and Appendix B of my Ph.D. dissertation, Hours of Work in the United States, 1900-1957 (unpublished Ph.D. dissertation, Department of Economics, University of Chicago, 1961). My thanks are due to both H. Gregg Lewis and Albert Rees their assistance on the dissertation and their helpful suggestions on an earlier draft of this paper. 1See, e.g., U.S. Bureau of the Census, Historical Statistics of the United States, Colonial Times to 1957 (Washington, 1960), 92-3; and U.S. Bureau of Labor Statistics, Employment and Earnings Statistics the United States, 1909-60, Bull. No. 1312 (Washington, 1961), 14, 31, and 422. 2Albert Rees, New Measures of Wage-Earner Compensation in Manufacturing, 1914-57, National Bureau of Economic Research, Occasional Paper 75 (New York, 1960). 'The new series exclude only the reporting divisions (1) executives, general officers, and assistants and (2) division officers, assistants, and staff assistants. See U. S. Interstate Commerce Commission, Monthly Report of Employees, Service, and Compensation, Forms A and B.
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