The flexibility of the workweek in the United States: evidence from the FIFA World Cup.
Lozano, Fernando A.
I. INTRODUCTION
At any given time, an American worker should benefit from some
flexibility in his workweek schedule. There are events whose timing
overlaps with the workday and if these events are valued by the worker,
consuming them will increase the quality of the worker's leisure.
The possibility to reschedule his work hours, and consume a given event,
will result in higher worker's utility. Perhaps the worker knows
ahead of time when this event will occur and plans accordingly: for
example during the National Collegiate Athletic Association (NCAA)
tournaments in March, Saint Patrick's Day also in March, or the
Presidential Inauguration in January. Alternatively, the worker will
equally benefit from some work flexibility in the face of an event that
is unpredictable, such as: bad weather, a natural disaster, or a sick
child at home. Even though weekly schedule flexibility is important and
valued by workers, it is not clear whether workers adjust their work
schedule in the face of an event that overlaps with the workday,
especially if consuming the event results in higher workers'
utility.
While workers' weekly schedule flexibility has remained
relatively unexplored, economists have paid considerable attention to
the market hours of American workers. For example, Costa (2000) analyzes
the evolution of the workday length of the average American male between
1890 and 1991, Coleman and Pencavel (1993a, 1993b) analyze the evolution
of hours worked by American workers between 1940 and 1988, and Kuhn and
Lozano (2008) analyze the evolution of the length of the workweek of
American workers between 1979 and 2006. Similarly, economists have been
interested in understanding the tradeoff between leisure and paid labor.
Recent research includes Connolly (2008), who shows that weather
determines a worker's day-to-day allocation of market hours, as
workers work longer hours during rainy days; or Gonzalez-Chapela (2007),
who shows that as prices of recreation goods (complements of leisure)
increase, American workers' hours of work increase as well. A
natural extension is to ask whether workers would decrease their hours
of labor in the face of an event that overlaps with the workweek. If
workers' value of leisure increases from consuming such event, then
it is conceivable that they would choose to consume it, rather than work
at the time of the event.
In this paper, I explore the workweek's schedule flexibility
of American workers during the last 15 years using the exogenous variation that arises due to the format of FIFA soccer World Cup. (1)
That is, unlike events that cater to the American public and may be
scheduled at times when Americans reduce their work hours anyway, the
World Cup game schedule and host country choice is determined mostly
independently from the United States labor market or the preferences of
American workers. Further, as each World Cup is hosted by a different
country and played every 4 years, the time games are broadcast live in
America may or may not overlap with the workday depending on the host
country where the World Cup is played. This allows me to estimate the
causal effect that the World Cup has on changes in a worker's
weekly schedule flexibility from three independent sources of variation:
across time--comparing year t with year t + i, i = 1, 2, 3; across
space--the host country will determine the time games are broadcast live
in the United States; lastly, the third source of variation is the time
games are broadcast live in each U.S. time zone, as each match
broadcast's scheduled time will differ across different time
zones--potentially the same game will overlap with the workday in a time
zone within the United States and not in other time zones.
Empirically, I compare deviations in a worker's weekly work
hours during the World Cup from his usual work schedule, with the
deviations from the usual workweek of a demographically equivalent
worker at other times. Importantly, and as argued above, games played in
different countries are televised live at different local times, and the
times that these games are televised locally will determine whether the
timing of the World Cup overlaps with the worker's regular work
schedule in each U.S. time zone. For example, in France 1998 most of the
games were played at 9:00 p.m. Central European Time; which is 4:00 p.m.
on the U.S. East Coast and 1:00 p.m. on the Pacific Coast. In contrast,
in Korea-Japan 2002 most of the games took place at 8:30 p.m. Eastern
Asia time; this is 7:30 a.m. on the East Coast and 4:30 a.m. on the West
Coast. I hypothesize that as the World Cup is played in different host
countries, the worker's decision to supply less market hours than
in a usual work week varies accordingly to the time games are televised
in the local time zone: when the games are televised early in the
morning or late in the afternoon, Americans will not reduce their hours
of work as much as when games are televised between 9:00 a.m. and 5:00
p.m. locally. In a sense, my strategy is similar to Hamermesh et al.
(2008), who analyze the timing and coordination between persons'
activities and local television schedules.
My results show that after controlling for observable demographic
characteristics, as well as year and monthly fixed effects, American
workers reduce their weekly hours of work on average during the World
Cup by up to 9 min. This suggests that roughly one out of every ten
workers reduces his weekly hours by the time it takes to watch a
complete soccer match (90 min + 15 min half time intermission) per week.
Most of this change in the worker' s weekly work hours is
concentrated among salary paid workers, who reduce on average their
hours of work by 28 weekly minutes. Again, this is equivalent to one in
three salary paid workers adjusting his hours of work by the time it
takes to watch a game, or more likely one in nine salary paid workers
adjusts his hours of work by the amount of time it takes to watch three
weekly soccer matches. Interestingly, after controlling for demographic
characteristics, year and month fixed effects, hourly paid workers do
not adjust their hours of work during the soccer World Cup. This
difference is significant because the short run opportunity cost of 1
hour worked less among salary paid workers is arguably zero or very
small, while for hourly paid workers the short run opportunity cost of 1
hour less of work is the forgone hourly wage. To the extent that salary
paid workers are associated with white collar jobs, and hourly paid
workers are associated with blue collar jobs (Hamermesh 2002), this
result highlights an important source in labor market differences among
workers with different pay frequency in the United States.
Finally, it must be noted that the World Cup schedule is publicly
available well before the matches are played, and workers with flexible
weekly work schedules can plan to reschedule their market hours in order
to view the World Cup matches accordingly. In this sense my paper
differs from Connolly (2008), where weather is assumed to be an
exogenous shock and cannot be predicted ahead of time. Also, note that
the emphasis of this paper is on the workweek-following Kuhn and Lozano
(2008)--rather than day-to-day (as Costa 2000 or Connolly 2008) or
annual hours of work (Coleman and Pencavel 1993a, 1993b). This is
important as weekly work schedules represent a different margin of the
worker's labor/leisure tradeoff.
II. DATA
In this paper, I use data from the 1994-2007 National Bureau of
Economic Research (NBER) Collection of the Current Population Survey
Outgoing Rotations Groups (CPS ORG). In order to identify variations in
hours of work between households that are surveyed during the World Cup
and not, I estimate the difference between the respondent's hours
worked last week and his usual hours of work, and I multiply this
difference by 60 for ease of interpretation. (2) These two measures are
consistent as they refer to the hours of work in the respondent's
main job, and the only difference is that usual hours refers to the mode
of all workweeks, and last week refers to the hours in the week prior to
the CPS survey week, the reference week. (3) A negative difference
between last week hours and usual hours means that the hours of work
last week were less than the hours in the usual week--a positive
difference means that hours in the usual week are less than hours last
week. The null hypothesis to test is whether the difference between
usual and last week hours is zero, and during the World Cup I expect
these differences in hours of work to be negative. Hereafter, I will
refer to this difference as the weekly working gap. Importantly, I
concentrate on the worker's flexibility to change hours across
weeks, and am unable to identify flexibility within weeks or days.
Omitting the latter attenuates my results towards zero, as I am failing
to capture another dimension of schedule flexibility. Further, I am
unable to make any statement about changes in total hours worked over
the long run due to the World Cup, or any change in the worker's
productivity.
Figures 1 and 2 show the weekly working gap for 48 periods of time
between 1994 and 2007. Figure 1 refers to salary paid workers, and
Figure 2 refers to hourly paid workers. Each time period is composed as
follows: Period 1 contains observations surveyed during February(t),
March(t) and April(t); Period 2 contains observations surveyed during
May(t), June(t) and July(t); Period 3 contains observations from the
August(t), September(t), and October(t) surveys; and Period 4 from the
November(t), December(t) and January(t + 1) surveys. (4) Periods when
the World Cup is being played are signaled with a clear bar and a dashed
line marks all summers. The data in these figures highlight three facts:
First, differences in hours of work between last week's hours and a
usual week's hours tend to be negative; this is not surprising as
workers tend to take days off, holidays, sick leave, and vacation.
Figure 1 also shows that American workers do tend to work less hours
last week on average during the World Cup than at other periods, but
these differences do not seem much greater than differences in other
June/July periods. Finally, these data show that the variance in
differences between last week and usual hours is greater among salaried
paid workers than among hourly paid workers, which is not surprising
given that salaried paid workers have more discretion over their hours
of work in the short run than hourly paid workers do (Bureau of Labor
Statistics 2005).
[FIGURE 1 OMITTED]
[FIGURE 2 OMITTED]
The sample in this paper includes all employed males and females
living in the United States surveyed in the CPS between 1994 and 2007;
notice that the sample includes both foreign- and native-born workers.
During this time four World Cups were played: USA 1994, France 1998,
Korea-Japan 2002 and Germany 2006. (5) I restrict teachers and
professors from the sample, as they are likely to change their working
routine during the summers. I also drop from the sample agricultural
workers. To control for outliers, I drop observations whose weekly
working gap is greater than the 99th percentile and observations that
are smaller than the 1st percentile. I also drop all observations whose
hourly wage is smaller than $2.00. All monetary units are in real
dollars where the base period is January 1994. Basic summary statistics
are presented in Table 1, the first column presents means for
observations surveyed in months other than a World Cup month and the
second column presents means for observations surveyed in months during
the World Cup. The top panel presents means for all observations in the
sample, and the bottom panel presents observations for workers who are
salary paid. When analyzing the complete sample, there are two important
points to note in these raw estimates: first, usual hours worked are
0.19 (12 min) hours greater when the World Cup is at play than during
other months, while hours worked last week are shorter during World Cup
months by 0.33 h (18 min)--this is most likely because the World Cup is
played during summers. Second, the proportion of employed workers who
did not work last week is greater during the World Cup months as well
and this difference is 1.4 percentage points. If I restrict the sample
exclusively to salary paid workers, usual hours of work are
indistinguishable between World Cup and non-World Cup surveys, but the
difference in hours worked last week is almost an hour worked shorter
during the World Cup months. Importantly, the proportion of employed
workers reporting zero hours last week is almost twice as big during
World Cup months than at other times.
To further explore these differences among salary paid workers
between World Cup and non-World Cup summers, Table 2 presents the reason
why last week hours are less than usual hours on each row, and the
proportion of workers whose last week hours are less than their usual
workweek in the first two columns and the weekly working gap in the last
two columns. Notice that the sample in this table is restricted to
salary paid workers surveyed exclusively in June or July. The results in
this table suggest the following: first, although the same proportion of
workers take time off due to holidays or vacations during summers with a
World Cup and summers without, the working hours gap is greater during
summers when the World Cup is played. Second, a greater proportion of
workers reported less hours last week than in the usual week during
World Cup summers due to either illness or labor conditions (slack labor, change of job, labor disputes). This result is similar to
Skogman-Thoursie's (2004), who shows that workers in Sweden are
more likely to report sick on the Monday after the Calgary Winter
Olympic Games and the skiing cross country championships.
III. THE FIFA WORLD CUP
Recently, economists have paid some attention to the World Cup. For
example, Dohmen et al. (2006) use an opinion survey in Germany to argue
that when the performance of the German national team improved in the
2006 World Cup, the economic sentiments and expectations of Germans
improved, and each win is associated with even more positive sentiments
and expectations. Similarly Edmans et al. (2007) use a cross-section of
countries to show that when a country's national team loses in the
World Cup, the country's stock market will observe on average a
loss of 64 basis points in the following trading day. Hagn and Maennig
(2008) use the World Cup as a natural experiment to compare employment
in German cities who hosted the 1974 World Cup, and those cities who
don't, and they fail to find any evidence of employment effects due
to hosting the World Cup. Finally and closer to this paper, Tucker
(2008) uses the 2002 World Cup as an exogenous instrument to analyze the
benefits of the introduction of a communication technology in a
financial institution.
The FIFA Soccer World Cup is played every 4 years. To play in the
final round all countries that are members of FIFA must qualify in
regional tournaments. Then the final round is played in the host country
over the span of a month. Until the 1998 World Cup the final round
consisted of 24 teams, and since then the number of teams playing in the
final round has increased to 32. For example the 2006 finals were played
by 5 African teams, 4 Asian teams (including the Middle East), 1 team
from Oceania, 4 teams from Central America, North America or the
Caribbean, 4 teams from South America and 14 teams from Europe. These 32
teams are divided into 8 groups of 4. The top two teams in each group
(16 total) qualify to the second round, where the tournament takes a
format of direct elimination. The second round is followed by the
quarterfinals (third round) which consist of every winner of the second
round (8 in total). The winners from each quarterfinal play in the
semifinals, and finally the grand final and third place match are played
a month after the tournament started.
Table 3 presents information on local times and dates in which
games were played for each of the four World Cups covered by the sample.
Importantly, note that even within World Cup years there is variation in
the calendar dates that the World Cup is played, and hence the CPS will
observe different stages of the World Cup in different years. In
particular, USA 1994 was played from June 17 to July 17, and two CPS
surveys capture World Cup games in these days. The June survey, whose
reference week refers to the days 12-18, includes the inauguration and
first round games and the July survey includes the semifinals, the third
place game and the grand final. France 1998 was played from June 10 to
July 12 and also includes observations on the June survey when the first
round was played (reference week June 7-June 13) and the July survey as
the tournament's final took place on Sunday of the reference week
(July 12-July 18). In contrast, Korea-Japan was played from May 31 to
June 30, and the June survey's reference week includes 23 first
round games. Germany 2006 was played between June 9 and July 9, and the
June survey includes first round games from the week of June 11-June 17
plus the final match which was played on Sunday of the July
survey's reference week.
It is worth noting that during the time span this paper covers
soccer has gained in popularity in the United States. The New York Times
(Sandomil, 2006) reports that the World Cup final match in 2006 reached
16.9 million viewers, and 11.9 of them saw it on ABC while 5 million saw
it on Spanish speaking Univision. This is a 152% increment increase from
the 2002 World Cup and 31% increment increase from 1998. Also,
viewership for the 2006 final match was higher than that year's
National Basketball Association (NBA) finals and almost on par with the
NCAA tournament. But not only the final match saw increased viewership:
the average viewership for for each game televised on ABC, ESPN and
ESPN2 was 1.7 million, 2.3 million and 1.1 million respectively. (6) For
the 2006 World Cup 17 out of 20 ESPN's match telecasts reached a
rating of 1.0 or better, and 7 reached 2.0 or better. In the 1998 World
Cup only 7 match telecasts reached a rating of 1.0 and only 1 reached a
rating of 2.0 or better.
The identification strategy on this paper assumes that FIFA's
decision of where and when the World Cup is played is independent from
the U.S. labor market. If the choice of host country is done to maximize
television viewership in the United States then using variation in the
time at which games are televised in the United States fails to identify
workers' decision between market hours and time spent watching the
World Cup. (7) If such is the case, then it is conceivable that the
World Cup games are scheduled at times that maximize viewership, and in
the absence of those games American workers will consume other types of
leisure anyway, and observed decreases of hours of work during the World
Cup will be spurious. This seems unlikely: First, the World Cup's
host country is chosen 7 years in advance of each tournament by
FIFA's executive committee. The host country is chosen by a single
transferable vote system, and each candidate country must fulfill the
requisite of not belonging to the regional federation that hosted any of
the previous two World Cups. But even if the decision by FIFA's
executive committee is made by forecasting the best time to maximize
U.S. viewership, variation across different local time zones across
different World Cups will identify the effect of the World Cup on hours
of work as the World Cup will overlap with the workday in some parts of
the United States and not in other parts. Further, given the length of 1
month that the World Cup lasts, I am assured that the CPS monthly survey
will contain observations which were surveyed during a World Cup every 4
years.
IV. EMPIRICAL STRATEGY
The empirical strategy in this paper consists of comparing the
difference between hours of work last week and usual hours of
work--heuristically this is similar to a matched pairs estimation where
we observe for the same observation's hours during the World Cup
(hours last week) and hours at other times (usual hours of work).
Specifically I estimate the following equation
(1) [G.sub.iyt] = [gamma] W [C.sub.iyt] + [x'.sub.iyt] [theta]
+ [[epsilon].sub.iyt]
where [G.sub.iyt] represents the gap between last week and usual
hours, W [C.sub.iyt] is an indicator variable that takes a value of one
during a World Cup month, and zero otherwise; [x'.sub.iyt] is a
vector of demographic characteristics that may or may not vary with time
(age, age squared, education, state, year dummies and occupation fixed
effects). The subscript i represents each worker, y represents each year
and t represents each month. The parameter of interest is [gamma] which
represents the change in hours of work during the World Cup, [gamma]
< 0 means that hours last week are shorter than usual hours in the
main job. Equation (1) will estimate y consistently as long as cov (W
[C.sub.iyt], [[epsilon].sub.iyt]) = 0 which is an implausible assumption. As suggested in Figure 1, it is quite possible that hours of
work are lower during the World Cup because this event takes place
during the summer, and hours of work decrease during summers anyway even
in the absence of the World Cup. Alternatively it may be that hours of
work are shorter during the World Cup because of some idiosyncratic macroeconomic phenomenon during 1994, 1998, 2002 and 2006--a time
variant characteristic. To control for this I decompose [[epsilon].sub.iyt] = [[mu].sub.t] + [v.sub.y] + [[upsilon].sub.iyt]
where [v.sub.y] is a year specific component, [[mu].sub.t] is a month
specific component and [[upsilon].sub.iyt] is a random variable assumed
to have mean zero. Estimating Equation (1) with year and month fixed
effects estimates y consistently as long as cop(W [C.sub.iyt],
[[upsilon].sub.iyt]) = 0. (8)
An alternative specification, that relaxes the time invariance assumption, is to take advantage of the scheduled times the World Cup is
played. As mentioned above, the World Cup is played in a different
country every 4 years, which generates variation in the time high
profile games are broadcast in the United States. For example, during
the USA '94 World Cup most games were played at 4:35 p.m. in the
East Coast, which is 1:35 p.m. in the Pacific Coast. On the other hand,
during the Korea-Japan '02 World Cup games that were played at 8:30
p.m. Asian Standard Time were televised at 7:30 a.m. on the United
States' East Coast, and at 4:30 a.m. in the Pacific Coast. As
argued in the previous section, the variation in the choice of host
country and therefore times games are televised in the United States is
assumed to be exogenous because FIFA's Executive Committee chooses
the country where the World Cup will be played arbitrarily. To take
advantage of this variation I estimate the following equation:
(2) [G.sub.ijyt] [[beta].sub.1] [T1.sub.iyt] + [[beta].sub.2]
[T2.sub.iyt] + [[beta].sub.3] [T3.sub.iyt] + [x'.sub.iyt] [theta] +
[[epsilon].sub.ijyt]
where [T1.sub.jyt] equals one if most of the high profile games
during the CPS reference week were televised in region j between 12 a.m.
and 6 a.m. and zero otherwise, [T2.sub.jyt] takes a value of one if most
of the high profile games during the CPS reference week were televised
in region j between 6 a.m. and 12 p.m., and [T3.sub.jyt] takes a value
of one if most of the high profile games during the CPS reference week
were between 12 p.m. and 6 p.m. in region j. Again, for this
specification I use the time when most of the high profile games were
played during the reference week of the World Cup month and the time is
marked with a star in Table 3. Under this strategy, note that none of
the games were played between 6 p.m. and 12 a.m. in the different U.S.
local times, and the omitted category in Equation (2) is all
observations surveyed in months when the World Cup is not played.
A third specification is:
(3) (2) [G.sub.ijyt] [[delta].sub.1] [M1.sub.jyt] + [[delta].sub.2]
[M2.sub.jyt] + [[delta].sub.3] [M3.sub.jyt] + [[delta].sub.4]
[M4.sub.jyt] + + [x'.sub.iyt] [theta] + [[epsilon].sub.ijyt]
where [M1.sub.jyt] is the number of minutes World Cup games were
broadcast live between 12 a.m. and 6 a.m. in region j's time zone
during year y. Similarly [M2.sub.jyt] is the number of minutes games
were broadcast live in region j between 6 a.m. and 12 p.m., [M3.sub.jyt]
is the number of minutes games were broadcast live in region j live
between 12 p.m. and 6 p.m., and [M4.sub.jyt] is the number of minutes
games were broadcast live in region j. The estimates of
[[delta].sub.1]-[[delta].sub.4] are relative to changes in the hours of
work during non-World Cup periods conditional on the variables in vector
x.
Importantly, as it may be possible that workers show up in their
workplace during the World Cup, and they may take a break during the
workday to follow the matches but fail to report different hours of work
in the data, my results are likely to estimate a lower bound in these
differences of the change in hours of work during the World Cup. (9)
V. RESULTS
Unconditional estimates of Equations (1)-(3) are presented in Table
4, the top panel shows estimates from Equation (1), the second panel
shows estimates from Equation (2), and the bottom panel shows estimates
from Equation (3). The first column presents estimates for all workers,
second column estimates for hourly paid workers and the third column
estimates for salary paid workers only. The first row in each panel
represents the difference between actual hours and usual hours in times
when the World Cup is not in play. Across all specifications, this
number is robust at values of 62 weekly minutes worked less for hourly
paid workers and 58 weekly minutes less for salary paid workers. As in
Figures 1 and 2, it makes intuitive sense that these differences are
negative as hours last week are likely zero (or smaller than the usual
weekly hours) sometimes because people take vacations, sick leave, and
temporary separations from the job--and as long as the separation is
temporary and the job is still the respondent's main job, usual
hours will be non-zero. The second row in the top panel presents
unconditional estimates of [gamma] for Equation (1), suggesting that all
workers reduce work by 31 min/week during the World Cup before any type
of controls are added, hourly paid workers reduce their paid work during
the World Cup by 20 min/week, and salary paid workers decrease their
market hours by almost 50 min/week.
The estimates for [[beta].sub.1], [[beta].sub.2] and [[beta].sub.3]
in Equation (2) are presented in the middle panel of Table 4. These
estimates suggest that all American workers do not reduce their hours of
work when games are played between 12 a.m.
and 6 a.m., they do reduce their hours by 28 min/week when games
are played between 6 a.m. and 12 p.m., and by 33 min/week when games are
played between 12 p.m. and 6 p.m.
The magnitude of the estimates for salary paid workers suggests
that any differences in market labor during the World Cup are greatest
among this group: between 6 a.m. and 12 p.m.
salary paid workers reduce their weekly hours by 43 min, while
hourly paid workers reduce their weekly hours by 20 min. When games are
between 12 p.m. and 6 p.m., salary paid workers reduce their weekly
hours by 54 min, and hourly paid workers only by 21 min. Finally, rows
2, 3, 4 and 5 in the bottom panel show the estimates of [[delta].sub.1],
[[delta].sub.2], [[delta].sub.3] and [[delta].sub.4] when the
explanatory variable is the number of minutes a World Cup game was being
broadcast at different time zones. Note that before controlling for
other demographic characteristics, and concentrating on the salary paid
sample, each minute a game is being broadcast suggests reductions of the
hours gap by 0.05 min, 0.02 min and 0.26 min at 6 a.m.-12 p.m., 12
p.m.-6 p.m., and 6 p.m.--12 a.m. respectively. The unusually high
estimate for 6 p.m.-12 a.m. is due to the United States World Cup in
1994, when the games were played on TV's prime-time and in the
month of July, where not working due to vacation is more common. Again,
the estimates in Table 4 are before any demographic controls are added,
and due to the fact that the World Cup is played during summers, these
estimates confound the effect that the World Cup has on the weekly work
schedule and the effect that vacations have on the weekly work
schedules. Perhaps the one striking feature of this table is the
difference in the World Cup coefficient's estimates between hourly
and salary pay, especially as the last week--usual hours estimate which
captures the hourly gap in non-World Cup periods is relatively close
across the different pay groups. To compare estimates of changes in the
workweek due to the World Cup within each month and controlling for
other demographic characteristics, I turn to Tables 5-7.
Table 5 presents ordinary least squares estimates for y when
controls are added to Equation (1). The first column presents estimates
for all workers and includes controls for education, age, age squared,
state, month fixed effects, and year fixed effects. The second column
presents estimates for all workers and includes all regressors in column
one, plus occupation-year cross product fixed effects. The third and
fourth columns present estimates for hourly paid workers, with and
without occupation-year fixed effects respectively. The last two columns
replicate the same, but for salary paid workers. The estimates across
these specifications suggest that even after controlling for month and
year fixed effects American workers reduce their number of weekly hours
of work during the World Cup, and that this is mostly due to salary paid
workers. For example, column 2 suggests that after controlling for
observable characteristics all American workers reduce their hours of
work by an average of 9 weekly minutes during the World Cup. When the
sample is restricted to hourly paid workers, the estimates are not
statistically different than zero. When the sample is restricted to
salary paid workers and include all controls, the change in hours of
work during the World Cup is 28 min less. Again, these results highlight
the importance of time-pay method on a worker's schedule
flexibility, where hourly paid workers do not change their hours of work
during the World Cup. This may be because either hourly paid
workers' opportunity cost of watching a match is the foregone wage,
or because they can reschedule their hours within each week.
Table 6 presents estimates for Equation (2), again using
occupation-year fixed effects in the even numbered columns. The results
in column 2 suggest that after controlling for demographic
characteristics workers do not change their hours of work if the games
are between 12 a.m. and 6 a.m., but if games are between 6 a.m. and 12
p.m. workers supply on average around 15 min less per week, and if games
are between 12 p.m. and 6 p.m. workers supply on average 8 min less per
week. None of these estimates is statistically significantly different
than zero at the 5% confidence level, but the last two are at the 10%
confidence level. Again, and as in Table 5, there are stark contrasts
between hourly and salary paid workers, as the bulk of the changes in
weekly hours of work are concentrated among the latter. That is, in
column six, where I restrict the sample to salary paid workers, I find
that when games are between 6 a.m. and 12 p.m. the hours of work
decrease by more than 32 weekly minutes, and when games are between 12
p.m. and 6 p.m. the hours of work decrease by 28 weekly minutes. These
estimates do not seem out of line, and make intuitive sense, as they
suggest that one out of three salary paid American workers watch a World
Cup game every week when the World Cup overlaps with the work day.
Table 7 presents estimates of Equation (3), and they indicate the
change in weekly minutes of work during the World Cup for each extra
minute a game is played in each time slot. The results suggest that
after controlling for demographic characteristics as well as
year-occupation fixed effects, weekly minutes of work among all workers
decrease by 2/100 for each extra minute of match broadcasted when games
are broadcast between 6 a.m. and 12 p.m. If the sample is restricted to
salary paid workers then weekly minutes of work during the World Cup
decrease by 3/100 of a minute during 6 a.m. and 12 p.m. These estimates
are not different from those in Table 5, if one considers that the
average World Cup week has approximately 10 games or 15 weekly hours in
the 6 a.m.-12 p.m. time slot, then 900 min x 3/100 equals 27 weekly
minutes on average. Unlike Table 6, the estimates for matches played
between 12 p.m. and 6 p.m. are not statistically significantly different
from zero. This difference is mostly due to the definitions of T1, T2,
and T3 where most of the games after 6 p.m. in the USA '94 World
Cup fell in the 12 p.m.-6 p.m. category, as 4:35 p.m. was the most
common match time and hence T2 got a value of one. Also, the point
estimates in this table for games played between 6 p.m. and 12 a.m. are
big in magnitude, but measured with high standard errors, yet once month
fixed effects are added these estimates attenuate significantly from
those in Table 4.
How can one reconcile these results with those in Table 3 which
shows that during the World Cup salary paid workers are more likely to
take longer vacations, take illness or personal days, or not work due to
diverse labor issues--such as job changes or temporary layoffs. It is
possible that the dimension these results are capturing is that salary
paid workers have more flexibility in scheduling their vacation days,
their personal days, or even the days when they switch jobs. That is, if
a worker values watching the World Cup enough, then this worker may
rearrange his schedule to be able to do this. In addition, recall that
these estimates include month fixed effects, and are effectively
comparing summer of year t with a World Cup with summers in years t + 1,
t + 2 and t + 3. That is, the results in the presence of month fixed
effects suggest that salary paid workers are more willing to take their
vacation and personal days during summers with World Cups than during
other summers. (10)
Table 8 estimates Equation (1) for different subgroups (and their
complements) of salary paid workers and they include year-occupation
fixed effects: males, females, immigrants, hispanics, college graduates,
married workers and workers with 35 or less years of age. The point
estimates in this Table can be compared with a baseline for all salary
paid workers of -28 weekly minutes in column 6 from Table 4. Not
surprisingly males reduce their hours of work more than females during
the World Cup, immigrants tend to reduce their hours more than native
workers, and so do Hispanic workers. Surprisingly, college graduates
tend to reduce their hours more than workers with less education; that
is, they reduce their hours of work by more than 30 min (again, this is
after all controls are added, including month and year fixed effects).
Similarly, single or divorced workers reduce their hours more than
married workers. Finally, young salary paid workers reduce their hours
more than older workers do, by approximately more than 30 min. These
differences should be taken with caution and rather as supporting
evidence of the results in Tables 5-7, as I am only comparing point
estimates. Because of the small samples that result from breaking up the
sample it is hard to make any inference across estimates based on the
relatively high standard errors.
Finally, it is not clear whether wages should be included in
Equations (1) and (2), as wages may determine changes in the hours of
work during the World Cup, and preferences for leisure may determine
jointly the number of hours of work and wages for a given worker.
Furthermore, when using CPS data wages are calculated by dividing usual
weekly earnings over usual weekly hours of work, and the denominator of
the explanatory variable will also be part of the response variable if
wages are added to Equation (1). Nevertheless, and assuming that I can
identify the role that wages have on the gap between hours last week and
usual hours, I estimate Equation (1) to include up to a quartic term in
log wages, plus interactions between the World Cup variables and log
wages up to a quartic term. (11) The results are presented in Figure 3
which shows the estimated gap for Equation (1) for salary and hourly
paid workers, and as in Table 4 the bulk of the differences are
concentrated among salary paid workers. Importantly, as we move across
the distribution of wages from lowest earners to highest earners the
difference in the weekly hours gap between observations surveyed during
the World Cup and all other observations attenuates. That is, salary
paid American workers at the bottom of the distribution work on average
1 hour less during the World Cup, and this difference attenuates to 30
min for salary workers in the second quantile, and it continues
diminishing as we move to the fight of the distribution. (12)
[FIGURE 3 OMITTED]
VI. DISCUSSION
in this section, I do different robustness checks to test whether
the negative relationship between hours of work and the FIFA World Cup
that the estimates discussed above indicate is spurious, as my estimates
may be capturing some other event or phenomenon that is unobserved in
the data. The first exercise I do consists of extending Equation (1) to
add a dummy variable for the months before and after each World Cup.
Specifically, I estimate the following equation for salaried workers
exclusively:
(4) [G.su.iyt] = [[lambda].sub.B] [B.sub.iyt] + [[lambda].sub.WC] W
[C.sub.iyt] + [[lambda].sub.A] [A.sub.iyt] + [x'.sub.iyt] [theta] +
[[epsilon].sub.iyt]
where [B.sub.iyt] represents a dummy variable that takes a value of
one if the observation was surveyed in the month before the World Cup
started, and [A.sub.iyt] represents a dummy variable that takes a value
of 1 if the observation was surveyed in the month after the World Cup.
If my results above are capturing some unobserved phenomenon then it may
be that [[lambda].sub.B] [not equal to] 0, [[lambda].sub.WC] [not equal
to] 0 and [[lambda].sub.A] [not equal to] 0. Note that if salaried
workers have a contract with their employers that specifies a fixed
number of hours of work in a set period of time, as suggested by the
results in Connolly (2008), then it is possible that due to the World
Cup [[lambda].sub.B] > 0, [[lambda].sub.A] > 0, or
[[lambda].sub.B] + [[lambda].sub.A] > 0. If this is the case, then it
must be that reductions of hours of work during the World Cup will be
accompanied by increases in hours of work in the periods before or after
the World Cup. This last point is difficult to prove, as inter-temporal
substitution of hours of work is more likely within a week or even
within a month, and not across months. Estimates for Equation (4) are
presented in the top panel of Table 9, the first column presents
unconditional estimates and the second column includes estimates when
all demographic controls are added. Importantly, the estimates of
[[lambda].sub.B] and [[lambda].sub.A] are zero, while the estimate of
[[lambda].sub.wc] is similar to the estimate of [gamma] in Table 4.
Similarly, I estimate whether changes in labor supply during the World
Cup are compensated with changes in the hours of work in the months
after and before the World Cup across different times when the World Cup
is played. To do so I estimate the following extension of Equation (2)
for salaried workers:
(5) [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]
The interpretation of Equation (6) is analogous to Equation (2)
and< [BT1.sub.iyt] takes a value of one if the observation was
surveyed during the month before a World Cup, in a time zone where most
of the matches were played between 12 a.m. and 6 a.m. local time;
[WCT1.sub.iyt] takes a value of one if the observation was surveyed
during the month when the World Cup was played, in a time zone where
most of the games were between 12 a.m. and 6 a.m. local time;
[AT1.sub.iyt] takes a value of one if the observation was surveyed
during the month after a World Cup, in a time zone where most of the
matches were played between 12 a.m. and 6 a.m. local time. Similarly
[BT2.sub.iyt], [WCT2.sub.iyt], [AT2.sub.iyt] are defined for
observations surveyed during the World Cup living in a time zone where
games are telecast between 6 a.m. and 12 p.m. local time, and
[BT3.sub.iyt], [WCT3.sub.iyt], [AT3.sub.iyt] are defined for
observations surveyed during the World Cup living in a time zone where
games are telecast between 12 p.m. and 6 p.m. The estimates are
presented in the bottom panel of Table 9. Again, the estimates for
months before and after the World Cup are zero once demographic controls
are added. These results suggest that whatever is driving the reduction
in hours of work during the World Cup is absent in the months before or
after the World Cup is played.
Another robustness check to test whether the results in this paper
are spurious is to test whether randomly chosen month-year combinations
can replicate the results above. To do this I randomly choose 4 pairs on
month-year combinations--recall there are four World Cup periods in the
sample--and I generate the indicator variable NWC-(Not World Cup), which
takes a value of one if the observation is surveyed in a chosen
year-month combination. I then estimate the following equation analogous
to Equation (1):
(6) [G.sub.iyt] = [psi] [NWC.sub.iyt] + [x'.sub.iyt] [theta] +
[[epsilon].sub.iyt]
and I replicate this exercise 500 times. That is, I randomly
generate 500 placebo World Cup experiments where the month and the year
are randomly selected. Figure 4 presents the histogram of the 500
different coefficients [psi] estimated in this exercise. Note that the
average mean of these coefficients is zero, further note that only 19%
of these coefficients are statistically significantly smaller than zero
(one sided test), that only 5% of these coefficients fall to the left of
the upper bound of the 95% confidence interval of the estimate of
[gamma] in Equation (1), and that less than 2% of these coefficients
have a baseline estimate of magnitude as big (in absolute value) as that
of the estimate of [gamma] in Equation (1). (13)
[FIGURE 4 OMITTED]
It is possible that the difference between the estimates of the
coefficients in Figure 4 and the estimates in Table 5 are due to the
fact that the World Cup is played during summers (although in Equations
(1)-(3), I control for month fixed effects and this should take care of
it). To test this hypothesis, I replicate the above exercise but I
constrained the survey month to be either June or July, and randomly
choose 4 years (different than the World Cup years), in such a way that
the new NWC variable is composed of observations from four different
June/July-year combinations. Again, I estimate Equation (6) 200 times
and the histogram of estimates is presented in Figure 5. The average
mean of these estimates is 2.14 min (not statistically significant
different than zero) more during the placebo June/July World Cup
observations, than at other times. Only six of these estimates are
statistically significantly smaller than zero. None of these placebo
estimates reaches the upper limit of the baseline estimate 95%
confidence interval. This result is intuitive as what I am doing is
comparing June/July from the World Cup, with all other June/July, and is
suggestive that whatever is driving the results for July 1994, June
1998, June-July 2002 and June 2006 is different than all other summers.
Finally, soccer in the United States is often associated either
with immigrants or with white-collar middle class workers, for example
see Markovits and Hellerman (2001). If workers with strong preferences
for soccer are more likely to be salary paid, then it is possible that
the differences in weekly work schedules between salary paid workers and
hourly paid workers during the World Cup are due to stronger tastes for
soccer among the salary paid. The American Time Use Survey (ATUS)
provides information on the amount of time a worker spends either
watching soccer (live, not on TV) or playing soccer during his time use
day. In addition, among a detailed set of labor market variables, the
ATUS provides information on whether the worker is hourly or salary paid
as well. The unconditional averages using ATUS data suggest that there
is not a statistical difference between salary and hourly paid workers
in the amount of time spent watching or playing soccer. On average, 0.3%
of all hourly workers played or watched soccer on any given day, while
0.2% of salary paid workers did. If I restrict observations to those
surveyed exclusively on Sundays, the unconditional estimates show that
0.8% of all hourly paid workers played or watched soccer, and 0.4% of
all salary paid workers did. This difference is statistically different
from zero, yet once I control for the same demographic characteristics
as in Equation (1), these differences disappear, perhaps because younger
workers are more likely to be hourly paid and more likely to watch a
World Cup match. (14) Hence I find no support, using data on whether a
worker watched or played soccer in the ATUS, that the results in this
paper are being driven by difference in preferences for soccer between
hourly and salary paid workers.
[FIGURE 5 OMITTED]
VII. SUMMARY
In today's labor market, workers benefit from having some
flexibility in their work schedules, and the ability to periodically
supply different hours of work in any given week than during the usual
week will result in higher utility for the worker. In this paper, I use
the natural variation that arises from the FIFA World Cup to explore the
flexibility of the schedule of hours of work of American workers. The
FIFA soccer World Cup presents a good natural experiment to test
workers' schedule flexibility and take advantage of three exogenous
sources of variation: the place where the World Cup is played, which
determines that the games will be televised in the United States at
different hours during the day, differences in the times games are
broadcast in different time zones, and the fact that the World Cup is
played every 4 years, which allows for inter-annual comparisons. I
hypothesize that American workers are likely to reduce their hours of
work when the timing of the games' live broadcast in the United
States overlaps with their market labor.
My results suggest that, after controlling for demographic
characteristics, year and month fixed effects, American workers supply 9
min of work less during the World Cup, a result that indicates that 1 in
10 American workers watch a weekly game. My results also show that the
magnitude of these estimates is greater among salary paid workers, who
reduce their hours of work on average by half an hour per week; this
indicates that roughly 1 in 3 of all salary paid workers watch a World
Cup game per week. Importantly, I show that my estimates for males,
immigrants and highly educated workers are greater than for their
complement demographic groups. Further, my results do not present any
evidence that reductions of hours of work during the World Cup are
accompanied by changes in the number of hours of work in the month
before or after the World Cup, or that the results are driven by factors
that are unobserved in the data. These results highlight the importance
of pay frequency in a worker's schedule flexibility, as salaried
paid workers have more discretion over the number of hours they work,
highlighting an important difference between workers with different pay
methods in the labor market.
ABBREVIATIONS
CPS ORG: Current Population Survey Outgoing Rotations Groups
ATUS: American Time Use Survey
NWC: Not World Cup
WC: World Cup
doi: 10.1111/j.1465-7295.2010.00321.x
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(1.) My definition of workweek schedule flexibility is different
from that commonly used by the Bureau of Labor Statistics (BLS). While
the traditional definition of schedule flexibility refers to the
worker's ability to choose his work start and end dates within a
day, in this paper I focus on weekly work schedules, which allows me to
include when the workers choose to take vacation days and personal days.
(2.) Multiplying by 60 allows the results to be interpreted in
minutes, instead of in fractions of an hour.
(3.) The question for usual hours is HRUSL1: How many hours per
week (do/does) (name/you) USUALLY work at (your/his/her) (job?/main job?
By main job we mean) (the one at which (you/he/she) usually)
((work/works) the most hours.) and the question for hours last week is
HRACT1: ((LAST WEEK/THE WEEK BEFORE LAST)/So, for (LAST WEEK/THE WEEK
BEFORE LAST)), how many hours did (you/he/she) ACTUALLY work at
(your/his/her) (job?/MAIN job?). One difference between these two
questions in that the universe for usual hours all employed people
(lfsr94 = 1 or lfsr94 = 2) while for hours last week is only employed
currently at work (lfsr94 = 1). For respondents whose labor force status
is employed, not at work (lfsr = 2) the hours" last week response
is missing as they work zero hours last week and are out of the
question's universe. The reason why these workers were absent from
work last week are (proportion): vacation (53%); illness (25%); child
care problems, family or personal problems, paternity/maternity leave
(12%); all other (10%). As these workers worked zero hours last week. t
change the value of hours last week accordingly.
(4.) In these figures, I collapse the data into periods of 3 months
just to facilitate the visual representation of the data, in the rest of
the paper each period of time is one calendar month.
(5.) The results are robust to selecting only males, and robust to
the inclusion of the 1994 World Cup or not.
(6.) Notice that 21 matches were played during the CPS reference
week that overlaps with the 2006 World Cup. A back-of-the-envelope
calculation which assumes a viewership of one and a half million viewers
for each game implies total weekly viewership of 31,500,000 non-unique
viewers of all matches during the CPS reference week. Assuming that each
soccer fan watched on average 4 games during the reference week yields
7,875,000 (= 31,500, 000/4) unique viewers of the World Cup.
(7.) This may be true for the 1994 U.S. World Cup, and the results
in this paper are consistent with adding 1994 to the sample or not.
(8.) To account for the CPS's two-step sample design 1
clustered the standard errors on each Primary Sample Unit (PSU).
(9.) While using television ratings for the World Cup is an
attractive idea, I am unable to do this as weekly ratings by region are
not available from Nielsen Media (conversation with Ms. Carly
Litzenberg, Client Service Executive, The Nielsen Company) for the World
Cups before 2002, thus using TV ratings will take away either the
variation across space if I use all four World Cups, or across time if I
use the regional data.
(10.) If I drop from the sample all workers reporting negative gaps
because of illness, labor issues, childcare problems, bad weather and
other causes my results are still robust although smaller in magnitude;
these results are available from the author.
(11.) As usual hours enters in the left side of the equation with a
negative sign and in the denominator on the right side of the equation,
my intuition is that a higher hourly wage due to relatively low usual
hours will bias the estimate of y towards zero as higher earnings will
be associated with longer last week worked hours.
(12.) A similar exercise for Equation (2) estimates a similar
relationship, but the estimated differences between World Cup and other
periods in the 6 a.m.-12 p.m. time slot, and the 12 p.m.-6 p.m. time
slot are only statistically significantly different from zero at the 10%
confidence level.
(13.) Interestingly, 6 of the 9 estimates with a coefficient of
magnitude -28 or smaller include the survey week of January 1996 when
the Atlantic Coast lived through one of the worst blizzards ever
recorded. While in January 1995 0.4% of salaried paid workers reported
an absence for work due to weather and 2.0% did in January 1997, 12.0%
did in January 1996.
(14.) Results are available from the author.
FERNANDO A LOZANO *
* I am grateful to Tahir Andrabi, Charlie Brown, Sheldon Danziger,
Dan Hamermesh, Peter Kuhn, Greg Price, Gary Smith and Michael
Steinberger for their comments and suggestions, to seminar participants
at UC Riverside, The University of Michigan Ann Arbor, The University of
Wisconsin Madison, Duke University, San Diego State University, SUNY Stony Brook and to participants in the 2008 Meetings of the Society of
Labor Economics, the 2008 DITE Conference in Santa Barbara, CA, and the
2008 European Association of Labor Economics Meetings. This research was
supported in part by a grant from the Ford Foundation to the Research
and Training Program on Poverty and Public Policy at the University of
Michigan. All errors remain mine.
Lozano: Department of Economics, Pomona College, 425 N. College
Avenue, Claremont, CA 91711. Phone 909-621-8985, Fax 909-621-8576,
E-mail fernando.lozano@pomona.edu
TABLE 1
Summary Statistics: Weekly Hours of Work
(1) (2)
Not World Cup World Cup
Usual hours 39.031 39.223
(0.007) (0.045)
Hours last week 38.020 37.688
(0.010) (0.063)
Not working--employed 0.028 0.042
(0.000) (0.001)
Proportion salary paid 0.368 0.364
(0.000) (0.002)
N 1,821,466 46,309
Conditional on being salary paid
Usual hours 42.869 42.863
(0.011) (0.072)
Hours last week 41.901 41.047
(0.015) (0.105)
Not working--employed 0.021 0.039
(0.000) (0.001)
N 663,396 16,671
Sample: All workers in the 1994-2007 CPS ORG.
Standard errors in parentheses.
TABLE 2
Differences in Weekly Hours of Work
Change in Minutes-
Proportion Working Less Working Less
(1) (2) (3) (4)
Not World Not World
Cup World Cup Cup World Cup
Vacation-holiday 0.066 0.066 -24.449 -25.806 *
(0.001) (0.002) (0.166) (0.411)
Childcare problems 0.007 0.007 -22.583 -22.158
(0.000) (0.001) (0.535) (1.267)
Illness 0.012 0.016 * -20.703 -22.730
(0.000) (0.001) (0.391) (0.861)
Labor Issues 0.003 0.004 * -15.466 -17.439
(0.000) (0.001) (0.603) (1.225)
Bad weather 0.001 0.000 -16.952 -11.317
(0.000) (0.000) (1.491) (2.244)
Other 0.005 0.006 -22.314 -23.024
(0.000) (0.001) (0.633) (1.507)
N 96,740 16,671
Note: Standard errors in parentheses.
Sample: All salary paid workers surveyed in June or July
in the 1994-2007 CPS ORG.
* World Cup estimate is statistically significant different
from the non World Cup estimate at 95% confidence level.
TABLE 3
Minutes Played in Each Time Zone During
CPS Reference Week
All World Cups
Standard
Time Zone Eastern Central Mountain Pacific
12 a.m.-6 a.m. 1260 1260 1530 1830
6 a.m.-12 p.m. 1435 1945 1705 2190
12 p.m.-6 p.m. 2705 2270 2420 1380
6 p.m.-12 a.m. 270 195 15 270
United States 1994: June 17 to July 17
12 a.m.-6 a.m. 0 0 0 0
6 a.m.-12 p.m. 25 145 175 180
12 p.m.-6 p.m. 695 * 650 * 800 * 810 *
6 p.m.-12 a.m. 270 195 15 0
France 1998: June 10 to July 12
12 a.m.-6 a.m. 0 0 0 30
6 a.m.-12 p.m. 180 360 360 330
12 p.m.-6 p.m. 540 * 360 * 360 * 360 *
6 p.m.-12 a.m. 0 0 0 0
Korea-Japan 2002: May 31 to June 30
12 a.m.-6 a.m. 1260 1260 1530 * 1800 *
6 a.m.-12 p.m. 810 * 810 * 540 0
12 p.m.-6 p.m. 0 0 0 0
6 p.m.-12 a.m. 0 0 0 270
Germany 2006: June 9 to July 9
12 a.m.-6 a.m. 0 0 0 0
6 a.m.-12 p.m. 420 630 630 1680 *
12 p.m.-6 p.m. 1470 * 1260 * 1260 * 210
6 p.m.-12 a.m. 0 0 0 270
Source: FIFA.com.
* Denotes World Cup estimate is statistically significant
different from the non World Cup estimate at 95% confidence
level.
TABLE 4
Ordinary Least Squares (OLS) Minutes of Work
on World Cup Unconditional Estimates
(1) (2) (3)
All Workers Hourly Paid Salary Paid
(a) World Cup indicator variable
Last week--usual hours -60.644 * -62.139 * -58.074 *
(0.459) (0.583) (0.695)
During World Cup -31.437 * -20.274 * -50.892 *
(3.398) (4.101) (5.194)
N 1,867,775 1,187,708 680,067
(b) Most common time of game indicator variable
Last week--usual hours -60.644 * -62.139 * -58.074 *
(0.459) (0.583) (0.695)
World Cup match 0-6 -16.490 -9.735 -28.193
(11.279) (14.656) (19.923)
World Cup match 6-12 -28.792 * -20.156 * -43.258 *
(7.614) (9.877) (10.481)
World Cup match 12-18 -33.223 * -21.049 * -54.698 *
(3.988) (4.703) (6.238)
N 1,867,775 1,187,708 680,067
(c) Minutes played at each time variable
Last week--usual hours -60.704 * -62.161 * -58.202 *
(0.460) (0.583) (0.695)
Minutes 0-6 0.006 0.008 0.004
(0.006) (0.008) (0.009)
Minutes 6-12 -0.034 * -0.027 * -0.046 *
(0.008) (0.011) (0.012)
Minutes 12-18 -0.006 0.002 -0.020 *
(0.005) (0.007) (0.008)
Minutes 18-24 -0.217 * -0.194 * -0.259 *
(0.034) (0.041) (0.055)
N 1,867,775 1,187,708 680,067
Note: Robust standard errors in parentheses clustered at PSU level.
Sample: All workers in the 1994-2007 CPS ORG.
* Statistically significant different to zero at 5% confidence level.
TABLE 5
OLS Minutes of Work on World Cup Conditional Estimates
All Workers Hourly Paid
(1) (2) (3) (4)
World Cup Indicator -8.982 * -8.973 * 2.207 1.968
(3.732) (3.734) (4.566) (4.570)
Occ-Year Fixed Effects No Yes No Yes
Constant -16.392 * -4.914 -18.930 * -8.015
(6.159) (5.998) (7.456) (7.214)
[R.sup.2] 0.006 0.007 0.005 0.007
N 1,867,775 1,867.775 1,187,708 1,187,708
Salary Paid
(5) (6)
World Cup Indicator -28.388 * -28.115 *
(5.793) (5.782)
Occ-Year Fixed Effects No Yes
Constant -16.375 0.816
(11.877) (11.707)
[R.sup.2] 0.008 0.010
N 680,067 680,067
Note: Robust standard errors in parentheses clustered at PSU level.
Sample: All workers in the 1994-2007 CPS ORG. Other regressors
included are month fixed effects, year fixed effects, state fixed
effects, years of education, age, age squared hispanic, black,
immigrant, marital status, and female indicator.
* Statistically significant different than zero at 5% confidence level.
TABLE 6
OLS Minutes of Work on World Cup by Hour of Match
All Workers Hourly Paid
(1) (2) (3) (4)
World Cup match 0-6 -4.324 -1.829 3.014 6.178
(11.491) (11.600) (14.848) (14.898)
World Cup match 6-12 -17.668 * -15.471 -8.168 -5.660
(7.805) (8.037) (10.115) (10.248)
World Cup match 12-18 -11.036 * -7.774 0.925 3.614
(4.086) (4.196) (4.910) (5.074)
Occ-Year Fixed Effects No Yes No Yes
Constant -6.770 -4.906 -10.230 -8.017
(5.839) (5.998) (7.045) (7.215)
[R.sup.2] 0.006 0.007 0.005 0.007
N 1,867,775 1,867,775 1,187,708 1,187,708
Salary Paid
(5) (6)
World Cup match 0-6 -16.550 -14.269
(20.405) (20.583)
World Cup match 6-12 -33.580 * -32.138 *
(10.781) (11.120)
World Cup match 12-18 -32.118 * -27.973 *
(6.499) (6.658)
Occ-Year Fixed Effects No Yes
Constant -5.081 0.859
(11.550) (11.707)
[R.sup.2] 0.008 0.010
N 680,067 680,067
Note: Robust standard errors in parenthesis clustered at PSU level.
Sample: All workers in the 1994-2007 CPS ORG. Other regressors
included are month fixed effects, year fixed effects, state fixed
effects, years of education, age, age squared hispanic, black,
immigrant, marital status and female indicator.
* Statistically significant at 5% confidence level.
TABLE 7
OLS Hours of Work on World Cup by Minutes Played in Survey Week
All Workers Hourly Paid
(1) (2) (3) (4)
World Cup match 0-6 0.004 0.004 0.007 0.007
(0.006) (0.006) (0.008) (0.008)
World Cup match 6-12 -0.023 * -0.022 * -0.017 -0.015
(0.008) (0.008) (0.011) (0.011)
World Cup match 12-18 0.004 0.005 0.012 0.013
(0.006) (0.006) (0.007) (0.007)
World Cup match 18-24 -0.079 * -0.050 -0.064 -0.037
(0.035) (0.036) (0.042) (0.043)
Occ-Year fixed effects No Yes No Yes
Constant -6.835 -4.968 -10.315 -8.081
(5.838) (5.998) (7.045) (7.213)
[R.sup.2] 0.006 0.007 0.005 0.007
N 1,867,775 1,867,775 1,187,708 1,187,708
Salary Paid
(5) (6)
World Cup match 0-6 0.000 -0.001
(0.009) (0.010)
World Cup match 6-12 -0.035 * -0.033 *
(0.012) (0.012)
World Cup match 12-18 -0.010 -0.009
(0.008) (0.009)
World Cup match 18-24 -0.109 * -0.073
(0.056) (0.057)
Occ-Year fixed effects No Yes
Constant -5.080 0.838
(11.550) (11.708)
[R.sup.2] 0.007 0.010
N 680,067 680,067
Note: Robust standard errors in parentheses clustered at PSU level.
Sample: All workers in the 1994-2007 CPS ORG. Other regressors
included are month fixed effects, year fixed effects, state fixed
effects, years of education, age, age squared hispanic, black,
immigrant, marital status and female indicator.
* Statistically significant different than zero at 5% confidence level.
TABLE 8
OLS Regressions: Different Subgroups
(1) (3) (5)
Male Immigrant Hispanic
World Cup indicator -36.800 * -39.947 * -37.069
(9.063) (12.154) (18.975)
Constant -43.774 * -45.319 -61.600
(17.685) (27.902) (112.378)
[R.sup.2] 0.012 0.013 0.023
N 296,330 118,268 47,484
(2) (4) (6)
Women US Born Non-Hispanic
World Cup indicator -21.164 * -25.475 * -27.265 *
(6.943) (6.522) (6.077)
Constant -88.941 * 18.713 4.537
(14.853) (13.084) (12.224)
[R.sup.2] 0.007 0.011 0.010
N 383,737 561,799 632,583
(7) (9) (11)
College Grad Married Young
World Cup indicator -31.467 * -18.233 * -32.472 *
(8.452) (7.280) (9.441)
Constant 62.882 * -52.976 * 58.622
(18.744) (17.531) 42.374
[R.sup.2] 0.012 0.012 0.011
N 31.0274 44.4159 229,397
(8) (10) (12)
Not College
Grad Not Married Not Young
World Cup indicator -25.359 * -45.462 * -26.383 *
(7.771) (9.816) (7.444)
Constant -21.256 -10.721 -58.090
(14.802) (18.234) (37.426)
[R.sup.2] 0.010 0.009 0.011
N 369,793 235,908 450,670
Note: Robust standard errors in parentheses clustered at PSU level.
Sample: All salary paid workers in the 1994-2007 CPS ORG. Other
regressors included are month fixed effects, year fixed effects,
state fixed effects, years of education, age, age squared
hispanic, black, immigrant, marital status and female indicator.
* Statistically significant different than zero at 5% confidence level.
TABLE 9
OLS Hours of Work on World Cup, Before
and After
(1) (2)
(a) World Cup Indicator Variable
Month before World Cup 14.305 * 5.397
(4.126) (4.830)
During World Cup -51.736 * -26.140 *
(5.201) (5.911)
Month after World Cup -50.442 * 8.108
(5.293) (5.950)
Controls No Yes
Occ-year fixed effects No Yes
Constant -57.230 * 0.827
(0.712) (11.707)
[R.sup.2] 0.001 0.010
N 680,067 680,067
(b) Most common time of game indicator
Month before WC match 0-6 5.739 -10.245
(16.197) (17.142)
World Cup match 0-6 -29.037 -14.023
(19.924) (20.652)
Month after WC match 0-6 -69.463 * -12.885
(20.131) (20.701)
Month before WC match 6-12 17.428 * -1.830
(7.847) (8.721)
World Cup match 6-12 -44.101 * -31.737 *
(10.481) (11.224)
Month after WC match 6-12 -50.822 * 3.923
(11.073) (11.939)
Month before WC match 12-18 13.993 * 8.330
(4.919) (5.528)
World Cup match 12-18 -55.542 * -25.263 *
(6.245) (6.802)
Month after WC match 12-18 -49.038 * 10.673
(6.297) (6.792)
Controls No Yes
Occ-Year fixed effects No Yes
Constant -57.230 * 0.786
(0.712) (11.708)
[R.sup.2] 0.001 0.010
N 680,067 680,067
Note: Robust standard errors in parentheses clustered at
PSU level.
Sample: All salary paid workers in the 1994-2007 CPS
ORG. Other regressors included are month fixed effects. year
fixed effects, state fixed effects, years of education, age,
age squared hispanic, black, immigrant, marital status and
female indicator.
* Statistically significant different than zero at 5%
confidence level.