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Why do Europeans work part-time? A cross-country panel analysis

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  • Buddelmeyer, Hielke
  • Mourre, Gilles
  • Ward-Warmedinger, Melanie

Abstract

This empirical paper seeks to determine the relative contribution of the business cycle and structural factors to the development of part-time employment in the EU-15 countries over the 1980s and 1990s, exploiting a panel of EU countries. In the short-run, the business cycle is found to exert a short-term negative effect on part-time employment developments, which is consistent with firms utilising part-time work to adjust their labour force to changing economic conditions. Institutions and other structural factors such as changes in legislation affecting part-time employment are found to be key drivers of the rate of part-time employment, significant in the longer run. Overall, although the role of individual factors differs in the 1980s and 1990s, a contribution analysis considering the most significant factors shows that the main structural and institutional variables generally well explain the development in the part-time employment rate in the EU countries, which is not the case in the United States. JEL Classification: J21, J22, J28, J68

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Bibliographic Info

Paper provided by European Central Bank in its series Working Paper Series with number 0872.

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Date of creation: Feb 2008
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Handle: RePEc:ecb:ecbwps:20080872

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Keywords: institutions; labour market policies; labour supply; Part-time employment; regulations; the business cycle; working time organisation;

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References

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Cited by:
  1. Bosch, Nicole & Deelen, Anja & Euwals, Rob, 2008. "Is Part-time Employment Here To Stay? Evidence from the Dutch Labour Force Survey 1992–2005," IZA Discussion Papers 3367, Institute for the Study of Labor (IZA).
  2. Gilles Mourre, 2009. "What explains the differences in income and labour utilisation and drives labour and economic growth in Europe? A GDP accounting perspective," European Economy - Economic Papers 354, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.

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