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Why do part-time workers earn less? The role of worker and job skills

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Author Info
Barry T. Hirsch

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Abstract

Part-time workers receive considerably lower wages than do full-time workers. Using Current Population Survey earnings files for September 1995 through December 2002, the author finds that measurable worker and job characteristics, including occupational skill requirements, account for much of the part-time penalty. Longitudinal analysis of the data indicates that much of the remaining gap reflects worker heterogeneity, evidenced by small wage gains and losses among workers switching between part-time and full-time jobs. The lower skills of part-time than full-time workers result primarily from limited work experience and accumulation of human capital. Little evidence can be found of a large wage gap between part-time and full-time women. A part-time wage penalty is found for men, but men account for less than one-third of total part-time employment. (Free full-text download available at http://digitalcommons.ilr.cornell.edu/ilrreview/.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 58 (2005)
Issue (Month): 4 (July)
Pages: 525-551
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Handle: RePEc:ilr:articl:v:58:y:2005:i:4:p:525-551

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Susan L. Averett & Julie L. Hotchkiss, 1996. "Discrimination in the payment of full-time wage premiums," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 49(2), pages 287-301, January.
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  5. Freeman, Richard B, 1984. "Longitudinal Analyses of the Effects of Trade Unions," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 1-26, January. [Downloadable!] (restricted)
    Other versions:
  6. Neal, Derek, 1999. "The Complexity of Job Mobility among Young Men," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 237-61, April. [Downloadable!] (restricted)
    Other versions:
  7. Bruce C. Fallick, 1998. "Part-time work and industry growth," Finance and Economics Discussion Series 1998-16, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  8. Lundberg, Shelly J, 1985. "Tied Wage-Hours Offers and the Endogeneity of Wages," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 405-10, August. [Downloadable!] (restricted)
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  9. Peracchi, Franco & Welch, Finis, 1995. "How representative are matched cross-sections? Evidence from the Current Population Survey," Journal of Econometrics, Elsevier, vol. 68(1), pages 153-179, July. [Downloadable!] (restricted)
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  10. 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!]
  11. Garry F. Barrett & Denise J. Doiron, 2001. "Working part time: by choice or by constraint," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 1042-1065, November. [Downloadable!] (restricted)
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  14. Daniel Aaronson & Eric French, 2004. "The Effect of Part-Time Work on Wages: Evidence from the Social Security Rules," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 329-352, April. [Downloadable!]
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  16. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-29, April. [Downloadable!] (restricted)
  17. Hirsch, Barry T. & Schumacher, Edward J., 1995. "Monopsony power and relative wages in the labor market for nurses," Journal of Health Economics, Elsevier, vol. 14(4), pages 443-476, October. [Downloadable!] (restricted)
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  18. Card, David, 1996. "The Effect of Unions on the Structure of Wages: A Longitudinal Analysis," Econometrica, Econometric Society, vol. 64(4), pages 957-79, July. [Downloadable!] (restricted)
  19. Henry S. Farber, 1999. "Alternative and Part-Time Employment Arrangements as a Response to Job Loss," NBER Working Papers 7002, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Raaum, Oddbjørn & Bratsberg, Bernt & Røed, Knut & Österbacka , Eva & Eriksson, Tor & Jäntti, Markus & Naylor, Robin, 2007. "Marital Sorting, Household Labor Supply, and Intergenerational Earnings Mobility across Countries," Memorandum 17/2007, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  2. B. Cockx & C. Goebel & S. Robin, 2009. "Is income support for part-time workers a steppingstone to regular jobs? An application to young long-term unemployed women," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/561, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  3. Daniel Aaronson & Eric French, 2001. "The effect of part-time work on wages: evidence from the Social Security rules," Working Paper Series WP-01-20, Federal Reserve Bank of Chicago. [Downloadable!]
  4. Mark Wooden & Diana Warren & Robert Drago, 2007. "Working Time Mismatch and Subjective Well-Being," Melbourne Institute Working Paper Series wp2007n29, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
    Other versions:
  5. John T. Addison & Christopher J. Surfield, 2005. "‘Atypical Work’ and Compensation," GEMF Working Papers 2005-14, GEMF - Faculdade de Economia, Universidade de Coimbra. [Downloadable!]
    Other versions:
  6. repec:ese:iserwp: is not listed on IDEAS
  7. Síle O’Dorchai & Robert Plasman & François Rycx, 2007. "The Part-Time Wage Penalty in European Countries: How Large Is It for Men?," IZA Discussion Papers 2591, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Booth, A.L. & Ours, J.C. van, 2007. "Job Satisfaction And Family Happiness: The Part-Time Work Problem," Discussion Paper 2007-69, Tilburg University, Center for Economic Research. [Downloadable!]
  9. Giovanni Russo & Wolter Hassink, 2008. "The Part-Time Wage Gap: a Career Perspective," De Economist, Springer, vol. 156(2), pages 145-174, June. [Downloadable!] (restricted)
  10. Karen Mumford & Peter N. Smith, 2007. "Assessing the Importance of Male and Female Part-Time Work for the Gender Earnings Gap in Britain," IZA Discussion Papers 2981, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Alison L. Booth & Jan C. van Ours, 2007. "Job Satisfaction and Family Happiness: The Part-time Work Puzzle," Department of Economics - Working Papers Series 1000, The University of Melbourne. [Downloadable!]
    Other versions:
  12. Christopher R. Bollinger & Barry T. Hirsch, 2005. "Match Bias from Earnings Imputation in the Current Population Survey: The Case of Imperfect Matching," IZA Discussion Papers 1846, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  13. Lixin Cai, 2007. "Effects of Health on Wages of Australian Men," Melbourne Institute Working Paper Series wp2007n02, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
    Other versions:
  14. Alison Booth & Margi Wood, 2004. "Back-to-front Down-under? Part-time/Full-time Wage Differentials in Australia," CEPR Discussion Papers 482, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
    Other versions:
  15. William Even & David Macpherson, 2004. "Do Pensions Impede Phased Retirement?," Labor and Demography 0407001, EconWPA. [Downloadable!]
    Other versions:
  16. Alison Booth & Margi Wood, 2006. "Back-to-front Down-under? Estimating the Part-time/Full-time Wage Differential over the Period 2001-2003," CEPR Discussion Papers 525, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  17. Alexander Muravyev, 2007. "Firm Size, Wages and Unobserved Skills: Evidence from Dual Job Holdings in the UK," Discussion Papers of DIW Berlin 681, DIW Berlin, German Institute for Economic Research. [Downloadable!]
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