We use data from the Work Orientations Survey to analyse the cyclicality of effort at work. Our aim is to test two competing theories of the labor market, the labor hoarding view and the Shapiro and Stiglitz (1984) “shirking model”. Self-reported work effort is found to be robustly procyclical, consistent with the former model. We provide evidence for the presence of labor hoarding by showing that the cyclicality of effort is positively related to the strictness of employment protection legislation. Finally, we document heterogeneity in effort cyclicality across occupations and individuals.