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Is Part-Time Employment Beneficial for Firm Productivity?

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  • Annemarie Kunn-Nelen
  • Andries De Grip
  • Didier Fouarge

Abstract

With this article, the authors are the first to analyze and explain the relationship between part-time employment and firm productivity. Using a unique data set on the Dutch pharmacy sector that includes the working hours of all employees and a hard physical measure of firm productivity, the authors estimate a production function including heterogeneous employment shares based on working hours. The authors find that firms with a large part-time employment share are more productive than firms with a large share of full-time workers: a 10% increase in the part-time share is associated with 4.8% higher productivity. Additional data on the timing of labor demand show that this can be explained by a different allocation of part-timers compared with full-timers. This enables firms with large part-time employment shares to allocate their labor force more efficiently across working days.

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Bibliographic Info

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

Volume (Year): 66 (2013)
Issue (Month): 5 (October)
Pages: 1172-1191

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Handle: RePEc:ilr:articl:v:66:y:2013:i:5:p:1172-1191

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References

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  1. Iranzo, Susana & Schivardi, Fabiano & Tosetti, Elisa, 2006. "Skill Dispersion and Firm Productivity: An Analysis with Employer-Employee Matched Data," CEPR Discussion Papers 5539, C.E.P.R. Discussion Papers.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Does part-time employment increase firm productivity?
    by Economic Logician in Economic Logic on 2011-02-22 15:05:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Andreas Koch & Jochen Späth & Harald Strotmann, 2012. "The Role of Employees for Post-Entry Firm Growth," IAW Discussion Papers 78, Institut für Angewandte Wirtschaftsforschung (IAW).
  2. Bart Loog & Thomas Dohmen & Maarten Vendrik, 2013. "The Scope for Increasing Total Hours Worked," De Economist, Springer, vol. 161(2), pages 157-174, June.
  3. Garnero, Andrea & Kampelmann, Stephan & Rycx, Francois, 2013. "Part-time Work, Wages and Productivity: Evidence from Belgian Matched Panel Data," IZA Discussion Papers 7789, Institute for the Study of Labor (IZA).
  4. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.

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