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Back-to-front Down-under? Estimating the Part-time/Full-time Wage Differential over the Period 2001-2003

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Author Info
Alison Booth
Margi Wood

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Abstract

In 2003, part-time employment in Australia accounted for over 42% of the Australian female workforce, nearly 17% of the male workforce, and represented 28% of total employment. Of the OECD countries, only the Netherlands has a higher proportion of working women employed part-time and Australia tops the OECD league in terms of its proportion of working men who are part-time. In this paper we investigate part-time full-time hourly wage gaps using important new panel data from the first four waves of the new Household, Income and Labour Dynamics in Australia Survey. We find that, once unobserved individual heterogeneity has been taken into account, part-time men and women typically earn an hourly pay premium. This premium varies with casual employment status, but is always positive, a result that survives our robustness checks. We advance some hypotheses as to why there is a part-time pay advantage in Australia.

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Publisher Info
Paper provided by Centre for Economic Policy Research, Research School of Social Sciences, Australian National University in its series CEPR Discussion Papers with number 525.

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Length: 33 pages
Date of creation: May 2006
Date of revision:
Handle: RePEc:auu:dpaper:525

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Web page: http://econrsss.anu.edu.au/
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Related research
Keywords: Part-time; full-time; efficiency hours; gender;

Find related papers by JEL classification:
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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References listed on IDEAS
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  1. Main, Brian G M, 1988. "Hourly Earnings of Female Part-time versus Full-time Employees," The Manchester School of Economic & Social Studies, Blackwell Publishing, vol. 56(4), pages 331-44, December.
  2. Booth, Alison & Ravallion, Martin, 1993. "Employment and Length of the Working Week in a Unionized Economy in which Hours of Work Influence Productivity," The Economic Record, The Economic Society of Australia, vol. 69(207), pages 428-36, December.
  3. Alison L. Booth & Jan C. van Ours, 2005. "Hours of Work and Gender Identity: Does Part-Time Work Make the Family Happier?," IZA Discussion Papers 1884, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Barry T. Hirsch, 2005. "Why do part-time workers earn less? The role of worker and job skills," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 58(4), pages 525-551, July. [Downloadable!] (restricted)
    Other versions:
  5. Joan R. Rodgers, 2004. "Hourly Wages of full-time and part-time employees in Australia," Australian Journal of Labour Economics (AJLE), The Centre for Labour Market Research (CLMR), Curtin Business School, vol. 7(2), pages 231-254, June.
  6. Mark Wooden & Diana Warren, 2003. "The Characteristics of Casual and Fixed-Term Employment: Evidence from the HILDA Survey," Melbourne Institute Working Paper Series wp2003n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
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