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The part-time pay penalty in a segmented labor market

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  • Fernández-Kranz, Daniel
  • Rodríguez-Planas, Núria

Abstract

This paper is the first to examine the implications of switching to PT work for women's subsequent earnings trajectories, distinguishing by their type of contract: permanent or fixed-term. Using a rich longitudinal Spanish data set from Social Security records of over 76,000 prime-aged women strongly attached to the Spanish labor market, we find that the PT/FT hourly wage differential is larger and more persistent among fixed-term contract workers, strengthening the existent evidence that these workers can be classified as secondary. The paper discusses problems arising in empirical estimation (including a problem not discussed in the literature up to now: the differential measurement error of the LHS variable by PT status), and how to address them. It concludes with policy implications relevant for Continental Europe and its dual structure of employment protection.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 18 (2011)
Issue (Month): 5 (October)
Pages: 591-606

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Handle: RePEc:eee:labeco:v:18:y:2011:i:5:p:591-606

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Keywords: Fixed-term and permanent contracts Hourly wage levels and growth Prime-aged women Individual- and firm-level fixed-effects estimator Differential measurement error of LHS variable Underlying channels;

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References

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Citations

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Cited by:
  1. Wolf, Elke, 2013. "The German part-time wage gap: bad news for men," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79969, Verein für Socialpolitik / German Economic Association.
  2. Fernández-Kranz, Daniel & Paul, Marie & Rodríguez-Planas, Núria, 2011. "Part-Time Work, Fixed-Term Contracts, and the Returns to Experience," IZA Discussion Papers 5815, Institute for the Study of Labor (IZA).
  3. Colella, Fabrizio, 2014. "Women's Part-Time - Full-Time Wage Differentials in Europe: an Endogenous Switching Model," MPRA Paper 55287, University Library of Munich, Germany.
  4. María Dolores Guilló Fuentes & Alfonsa Denia Cuesta, 2011. "Labour status and involuntary employment: family ties and part-time work in Spain," Working Papers. Serie AD 2011-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  5. Eleonora Matteazzi & Ariane Pailhé & Anne Solaz, 2012. "Part-time wage penalties in Europe: A matter of selection or segregation?," Working Papers 250, ECINEQ, Society for the Study of Economic Inequality.
  6. Schmid, Günther, 2010. "Non-Standard Employment and Labour Force Participation: A Comparative View of the Recent Development in Europe," IZA Discussion Papers 5087, Institute for the Study of Labor (IZA).
  7. Elke Wolf, 2014. "The German Part-Time Wage Gap: Bad News for Men," SOEPpapers on Multidisciplinary Panel Data Research 663, DIW Berlin, The German Socio-Economic Panel (SOEP).

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