Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Part-Time Pay Penalty in a Segmented Labor Market

Contents:

Author Info

  • Daniel Fernández-Kranz
  • Núria Rodríguez-Planas

Abstract

This paper is the first to examine the implications of switching to PT work for womens subsequent earnings trajectories, distinguishing by their type of contract: permanent or fixedterm. 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 PT work aggravates the segmentation of the labor market insofar there is a PT pay penalty and this penalty is larger and more persistent in the case of women with fixed-term contracts. 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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://research.barcelonagse.eu/tmp/working_papers/458.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 458.

as in new window
Length:
Date of creation: May 2010
Date of revision:
Handle: RePEc:bge:wpaper:458

Contact details of provider:
Postal: Ramon Trias Fargas, 25-27, 08005 Barcelona
Phone: +34 93 542-1222
Fax: +34 93 542-1223
Email:
Web page: http://www.barcelonagse.eu
More information through EDIRC

Related research

Keywords: Fixed-term and permanent contract; hourly wage levels and growth; prime-aged women; fixed-effects estimator; differential measurement error of LHS variable; underlying channels;

Other versions of this item:

Find related papers by JEL classification:

References

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.:
as in new window
  1. Ethel B. Jones & James E. Long, 1979. "Part-Week Work and Human Capital Investment by Married Women," Journal of Human Resources, University of Wisconsin Press, vol. 14(4), pages 579-594.
  2. Yolanda F. Rebollo & J. Ignacio Pérez, 2008. "The use of permanent contracts across Spanish regions: Do regional wage subsidies work?," Economic Working Papers at Centro de Estudios Andaluces E2008/09, Centro de Estudios Andaluces.
  3. Dolado, Juan J. & Garcia-Serrano, Carlos & Jimeno, Juan Francisco, 2001. "Drawing Lessons From the Boom of Temporary Jobs in Spain," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2884, C.E.P.R. Discussion Papers.
  4. Mocan, Naci & Tekin, Erdal, 2001. "Nonprofit Sector and Part-Time Work: An Analysis of Employer-Employee Matched Data of Child Care Workers," IZA Discussion Papers 408, Institute for the Study of Labor (IZA).
  5. O'Dorchai, Síle & Plasman, Robert & Rycx, Francois, 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).
  6. Buddelmeyer, Hielke & Mourre, Gilles & Ward-Warmedinger, Melanie, 2005. "Part-time work in EU countries: labour market mobility, entry and exit," Working Paper Series, European Central Bank 0460, European Central Bank.
  7. Izquierdo, Mario & Lacuesta, Aitor & Vegas, Raquel, 2009. "Assimilation of immigrants in Spain: A longitudinal analysis," Labour Economics, Elsevier, vol. 16(6), pages 669-678, December.
  8. Güell, Maia & Petrongolo, Barbara, 2003. "How Binding Are Legal Limits? Transitions from Temporary to Permanent Work in Spain," IZA Discussion Papers 782, Institute for the Study of Labor (IZA).
  9. Juan F. Jimeno & Luis Toharia, 1993. "The effects of fixed-term employment on wages: theory and evidence from Spain," Investigaciones Economicas, Fundación SEPI, Fundación SEPI, vol. 17(3), pages 475-494, September.
  10. Clark, Andrew E. & Senik, Claudia, 2004. "The (Unexpected) Structure of "Rents" on the French and British Labour Markets," IZA Discussion Papers 1438, Institute for the Study of Labor (IZA).
  11. Joan R. Rodgers, 2004. "Hourly Wages of full-time and part-time employees in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(2), pages 231-254, June.
  12. Samuel Bentolila & Juan Jose Dolado & Juan F. Jimeno, 2008. "Two-tier Employment Protection Reforms: The Spanish Experience," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 6(4), pages 49-56, December.
  13. López Bóo, Florencia & Madrigal, Lucia & Pagés, Carmen, 2009. "Part-Time Work, Gender and Job Satisfaction: Evidence from a Developing Country," IZA Discussion Papers 3994, Institute for the Study of Labor (IZA).
  14. Mario García-Ferreira & Ernesto Villanueva, 2007. "Employment risk and household formation: evidence from differences in firing costs," Banco de Espa�a Working Papers 0737, Banco de Espa�a.
  15. Cristina Barceló & Ernesto Villanueva, 2010. "The response of household wealth to the risk of losing the job: evidence from differences in firing costs," Banco de Espa�a Working Papers 1002, Banco de Espa�a.
  16. Hu, Yongjian & Tijdens, Kea, 2003. "Choices for part-time jobs and the impacts on the wage differentials. A comparative study for Great Britain and the Netherlands," IRISS Working Paper Series, IRISS at CEPS/INSTEAD 2003-05, IRISS at CEPS/INSTEAD.
  17. 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, University of Chicago Press, vol. 22(2), pages 329-352, April.
  18. Philip J. O'Connell & Vanessa Gash, 2001. "The effects of Working Time, Segmentation and Labour Market Mobility on Wages and Pensions in Ireland," Papers, Economic and Social Research Institute (ESRI) WP140, Economic and Social Research Institute (ESRI).
  19. Dolado Juan & Jansen Marcel & Jimeno Serrano Juan, 2007. "A Positive Analysis of Targeted Employment Protection Legislation," The B.E. Journal of Macroeconomics, De Gruyter, De Gruyter, vol. 7(1), pages 1-30, July.
  20. Karen Mumford & Peter N. Smith, 2007. "The Gender Earnings Gap In Britain: Including The Workplace," Manchester School, University of Manchester, vol. 75(6), pages 653-672, December.
  21. Bardasi, Elena & Gornick, Janet C., 2000. "Women and part-time employment: workers' 'choices' and wage penalties in five industrialized countries," ISER Working Paper Series 2000-11, Institute for Social and Economic Research.
  22. Buligescu Bianca & Crombrugghe Denis de & Mentesoglu Gülcin & Montizaan Raymond, 2008. "Estimating the wage penalty for maternal leave," ROA Research Memorandum 005, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  23. 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, Cornell University, ILR School, vol. 58(4), pages 525-551, July.
  24. Booth, Alison L. & Wood, Margi, 2006. "Back-to-front Down-under? Part-time/Full-time Wage Differentials in Australia," IZA Discussion Papers 2268, Institute for the Study of Labor (IZA).
  25. Booth, Alison L. & van Ours, Jan C., 2007. "Job Satisfaction and Family Happiness: The Part-time Work Puzzle," IZA Discussion Papers 3020, Institute for the Study of Labor (IZA).
  26. John F. Ermisch & Robert E. Wright, 1993. "Wage Offers and Full-Time and Part-Time Employment by British Women," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 111-133.
  27. Mario Izquierdo & Aitor Lacuesta, 2006. "Wage inequality in Spain: recent developments," Banco de Espa�a Working Papers 0615, Banco de Espa�a.
  28. Mary Gregory & Sara Connolly, 2007. "Moving Down: Women`s Part-time Work and Occupational Change in Britain 1991-2001," Economics Series Working Papers 359, University of Oxford, Department of Economics.
  29. Maria Jepsen & Sile Padraigin O'Dorchai & Robert Plasman & François Rycx, 2005. "The wage penalty induced by part-time work: the case of Belgium," DULBEA Working Papers, ULB -- Universite Libre de Bruxelles 05-17, ULB -- Universite Libre de Bruxelles.
  30. E. Galdon-Sanchez, Jose & Guell, Maia, 2003. "Dismissal conflicts and unemployment," European Economic Review, Elsevier, vol. 47(2), pages 323-335, April.
  31. Christopher Pissarides & Pietro Garibaldi & Claudia Olivetti & Barbara Petrongolo & Etienne Wasmer, 2005. "Women in the Labour Force : How Well is Europe Doing ?," Sciences Po publications info:hdl:2441/9081, Sciences Po.
  32. Paula Adam, 1996. "Mothers in an insider-outsider economy: The puzzle of Spain," Journal of Population Economics, Springer, Springer, vol. 9(3), pages 301-323.
  33. Kugler, Adriana & Jimeno, Juan F. & Hernanz, Virginia, 2002. "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labor Market Reforms," IZA Discussion Papers 657, Institute for the Study of Labor (IZA).
  34. Sara Connolly & Mary Gregory, 2009. "The part-time pay penalty: earnings trajectories of British Women," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages i76-i97, April.
  35. Bianca Buligescu & Denis de Crombrugghe & Gülçin Menteşoğlu & Raymond Montizaan, 2009. "Panel estimates of the wage penalty for maternal leave," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages i35-i55, April.
  36. Olivier Blanchard & Augustin Landier, 2001. "The Perverse Effects of Partial Labor Market Reform: Fixed Duration Contracts in France," NBER Working Papers 8219, National Bureau of Economic Research, Inc.
  37. Manning, Alan & Petrongolo, Barbara, 2006. "The Part-Time Pay Penalty for Women in Britain," IZA Discussion Papers 2419, Institute for the Study of Labor (IZA).
  38. Adam, Paula, 1996. "Mothers in an Insider-Outsider Economy: The Puzzle of Spain," Journal of Population Economics, Springer, Springer, vol. 9(3), pages 301-23, August.
  39. Hotchkiss, Julie L, 1991. "The Definition of Part-Time Employment: A Switching Regression Model with Unknown Sample Selection," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(4), pages 899-917, November.
  40. Wolf, Elke, 2002. "Lower wage rates for fewer hours? A simultaneous wage-hours model for Germany," Labour Economics, Elsevier, vol. 9(5), pages 643-663, November.
  41. Catalina Amuedo-Dorantes, 2000. "Work transitions into and out of involuntary temporary employment in a segmented market: Evidence from Spain," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(2), pages 309-325, January.
  42. Wayne Simpson, 1986. "Analysis of Part-Time Pay in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 19(4), pages 798-807, November.
  43. Sara Connolly & Mary Gregory, 2010. "Dual tracks: part-time work in life-cycle employment for British women," Journal of Population Economics, Springer, Springer, vol. 23(3), pages 907-931, June.
  44. Sánchez-Mangas, Rocio & Sánchez-Marcos, Virginia, 2008. "Balancing family and work: The effect of cash benefits for working mothers," Labour Economics, Elsevier, vol. 15(6), pages 1127-1142, December.
  45. Bentolila, Samuel & Saint-Paul, Gilles, 1992. "The macroeconomic impact of flexible labor contracts, with an application to Spain," European Economic Review, Elsevier, vol. 36(5), pages 1013-1047, June.
  46. Bound, John & Brown, Charles & Mathiowetz, Nancy, 2001. "Measurement error in survey data," Handbook of Econometrics, Elsevier, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 59, pages 3705-3843 Elsevier.
  47. Eichhorst, Werner, 2007. "The Gradual Transformation of Continental European Labor Markets: France and Germany Compared," IZA Discussion Papers 2675, Institute for the Study of Labor (IZA).
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. 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).
  2. 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.
  3. 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.
  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, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2011-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  5. 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).
  6. 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.
  7. 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).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bge:wpaper:458. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruno Guallar).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.