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The Part-Time Penalty for Natives and Immigrants

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  • Wahlberg, Roger

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    (Department of Economics, School of Business, Economics and Law, Göteborg University)

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    Abstract

    This study examines the part-time penalty for natives and immigrants in Sweden. We estimate an endogenous switching regression model, and the results indicate that there is evidence of self-selection into part-time and full-time jobs based on unobservable factors. Hence, individuals with full-time (part-time) jobs have unobserved characteristics that allow them to earn more (less) than average workers with full-time (part-time) jobs. We find that the adjusted part-time wage penalties are 20.9 percent for native males, 25.1 percent for immigrant men, 13.8 percent for native women, and 15.4 percent for immigrant women.

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    File URL: http://hdl.handle.net/2077/17894
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    Bibliographic Info

    Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 314.

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    Length: 24 pages
    Date of creation: 15 Sep 2008
    Date of revision:
    Handle: RePEc:hhs:gunwpe:0314

    Contact details of provider:
    Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
    Phone: 031-773 10 00
    Web page: http://www.handels.gu.se/econ/
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    Keywords: Part-time penalty; selection bias; natives; immigrants;

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    References

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    1. van der Gaag, Jacques & Vijverberg, Wim, 1988. "A Switching Regression Model for Wage Determinants in the Public and Private Sectors of a Developing Country," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 244-52, May.
    2. Stewart, Mark B, 1983. "Relative Earnings and Individual Union Membership in the United Kingdom," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 50(198), pages 111-25, May.
    3. 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).
    4. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-33, June.
    5. 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.
    6. Alan Manning & Barbara Petrongolo, 2008. "The Part-Time Pay Penalty for Women in Britain," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 118(526), pages F28-F51, 02.
    7. Inés Hardoy & P�l Schøne, 2006. "The Part-Time Wage Gap in Norway: How Large is It "Really"?," British Journal of Industrial Relations, London School of Economics, vol. 44(2), pages 263-282, 06.
    8. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, American Economic Association, vol. 70(3), pages 474-75, June.
    9. Adamchik, Vera A. & Bedi, Arjun S., 2000. "Wage differentials between the public and the private sectors: evidence from an economy in transition," Labour Economics, Elsevier, Elsevier, vol. 7(2), pages 203-224, March.
    10. 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.
    11. Michael Lokshin & Zurab Sajaia, 2004. "Maximum likelihood estimation of endogenous switching regression models," Stata Journal, StataCorp LP, StataCorp LP, vol. 4(3), pages 282-289, September.
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    Cited by:
    1. 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.
    2. 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).

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