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The part-time pay penalty

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Author Info

  • Alan Manning
  • Barbara Petrongolo

Abstract

In 2003, women working part-time in the UK earned, on average, 22% less than women working full-time. Compared to women who work FT, PT women are more likely to have low levels of education, to be in a couple, to have young and numerous children, to work in small establishments in distribution, hotels and restaurants and in low-level occupations. Taking account of these differences, the PT penalty for identical women doing the same job is estimated to be about 10% if one does not take account of differences in the occupations of FT and PT women and 3% if one does. The occupational segregation of PT and FT women can explain most of the aggregate PT pay penalty. In particular, women who move from FT to PT work are much more likely to change employer and/or occupation than those who maintain their hours status. And, when making this transition, they tend to make a downward occupational move, evidence that many women working PT are not making full use of their skills and experience. Women working PT in the other EU countries have similar problems to the UK but the UK has the highest PT pay penalty and one of the worst problems in enabling women to move between FT and PT work without occupational demotions. At the same time, PT work in the UK carries a higher job satisfaction premium (or a lower job satisfaction penalty) than in most other countries. Policy initiatives in recent years like the National Minimum Wage, the Part-Time Workers Regulations and the Right to Request Flexible Working appear to have had little impact on the PT pay penalty as yet although it is too early to make a definitive assessment of the full impact of some of these regulations. The most effective way to reduce the PT pay penalty would be to strengthen rights for women to move between FT and PT work without losing their current job.

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File URL: http://eprints.lse.ac.uk/3661/
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Bibliographic Info

Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 3661.

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Length: 97 pages
Date of creation: Mar 2005
Date of revision:
Handle: RePEc:ehl:lserod:3661

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Web page: http://www.lse.ac.uk/
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Related research

Keywords: employment transitions; part-time work; motherhood; EU; equality;

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References

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Citations

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Cited by:
  1. Síle O'Dorchai & Robert Plasman & François Rycx, 2007. "The part-time wage penalty in European countries: how large is it for men?," International Journal of Manpower, Emerald Group Publishing, vol. 28(7), pages 571-603, November.
  2. Prowse, Victoria, 2012. "Modeling employment dynamics with state dependence and unobserved heterogeneity," MPRA Paper 38038, University Library of Munich, Germany, revised 10 Apr 2012.
  3. Mumford, Karen A. & Smith, Peter N., 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).
  4. Bukowski, Maciej & Lewandowski, Piotr & Koloch, Grzegorz & Baranowska, Anna & Magda, Iga & Szydlowski, Arkadiusz & Bober, Magda & Bieliński, Jacek & Zawistowski, Julian & Sarzalska, Malgorzata, 2008. "Employment in Poland 2007: Security on flexible labour market," MPRA Paper 14284, University Library of Munich, Germany.
  5. Wendy Sigle-Rushton, 2008. "England and Wales: Stable fertility and pronounced social status differences," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 19(15), pages 455-502, July.
  6. Andreas Hornstein & Per Krusell & Giovanni L. Violante, 2007. "Frictional Wage Dispersion in Search Models: A Quantitative Assessment," NBER Working Papers 13674, National Bureau of Economic Research, Inc.
  7. Prowse, Victoria, 2006. "Part-time Work and Occupational Attainment Amongst a Cohort of British Women," IZA Discussion Papers 2342, Institute for the Study of Labor (IZA).
  8. Hornstein, Andreas & Krusell, Per & Violante, Giovanni L, 2006. "Frictional Wage Dispersion in Search Models: A Quantitative Approach," CEPR Discussion Papers 5935, C.E.P.R. Discussion Papers.

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