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The Dynamic Demand for Part-Time and Full-Time Labour

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Author Info
Friesen, Jane
Abstract

This paper explores the hypothesis that part-time work plays a distinct role in the adjustment strategies of firms in the face of economic shocks. Dynamic labor demand equations for part-time and full-time labor estimated from monthly data from the US Current Population Survey indicate that part-time labor is adjusted more rapidly in a number of industries. Furthermore, the adjustment of the two types of labor is not independent: disequilibrium in one slows the rate of adjustment of the other. These results lend support to the notion that part-time labor provides an important source of dynamic flexibility in some industries. Policies that reduce the relative costs of adjusting part-time labor, and changes in the economic environment that make flexibility more important to firms, may explain some of the growth in part-time employment that has taken place over the last several decades. Copyright 1997 by The London School of Economics and Political Science

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Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 64 (1997)
Issue (Month): 255 (August)
Pages: 495-507
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Handle: RePEc:bla:econom:v:64:y:1997:i:255:p:495-507

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  1. Euwals, Rob & Hogerbrugge, Maurice, 2004. "Explaining the Growth of Part-Time Employment: Factors of Supply and Demand," IZA Discussion Papers 1124, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Rob Euwals & Maurice Hogerbrugge, 2004. "Explaining the growth of part-time employment: factors of supply and demand," CPB Discussion Papers 31, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  3. Robert A. Hart, 2006. "Real Wage Cyclicality of Female Stayers and Movers in Part-Time and Full-Time Jobs," IZA Discussion Papers 2364, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Klinger, Sabine & Wolf, Katja, 2008. "What explains changes in full-time and part-time employment in Western Germany? : a new method on an old question," IAB Discussion Paper 200807, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
  5. Euwals, Rob & Hogerbrugge, Maurice, 2006. "Explaining the Growth of Part-Time Employment: Factors of Supply and Demand," CEPR Discussion Papers 5595, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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