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Part-time wage penalties in Europe: A matter of selection or segregation?

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Author Info

  • Eleonora Matteazzi

    ()
    (INED and University of Paris Ouest Nanterre La Défense)

  • Ariane Pailhé

    (INED)

  • Anne Solaz

    (INED)

Abstract

Different profiles of female participation and part-time employment can be observed within Europe. The aim of this paper is to estimate whether there still exists a wage penalty for part-time workers in four European countries (i.e. Austria, Italy, Poland, and the United Kingdom) after the introduction of Council Directive 97/81/EC concerning the Framework Agreement on part-time work and aiming at eliminate any form of discrimination against part-time workers. Full-time hourly wages exceed part-time hourly wages in all countries. Several explanations can be found in literature: different characteristics of part-time and full-time workers in terms of human capital accumulation, preferences, level of union membership, etc. Also the presence of discrimination against part-time workers within firms can explain this positive wage gap. However the magnitude of these explanations may differ between countries. Using the EU-SILC for the year 2009, we study the full-time/part-time pay differential focusing on the contribution of segregation and selection in explaining the observed positive wage gap. Results show that segregation matters in explaining the full-time/part-time wage gap. We find also evidence of a significant part-time wage premium in Austria and Poland once we control for sample selection.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-250.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 250.

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Length: 39 pages
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2012-250

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Related research

Keywords: work status; part-time employment; wage gap; decomposition; iscrimination. Classification-JEL: C31; J21; J22; J24; J31; J71.;

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References

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  1. 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.
  2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," 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. 14(3), pages 693-709, October.
  3. Lee, Lung-Fei, 1982. "Some Approaches to the Correction of Selectivity Bias," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 49(3), pages 355-72, July.
  4. Montgomery, Mark, 1988. "On the Determinants of Employer Demand for Part-Time Workers," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 112-17, February.
  5. Daniela Del Boca, 2002. "The effect of child care and part time opportunities on participation and fertility decisions in Italy," Journal of Population Economics, Springer, Springer, vol. 15(3), pages 549-573.
  6. 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.
  7. Buddelmeyer, Hielke & Mourre, Gilles & Ward-Warmedinger, Melanie E., 2004. "Recent Developments in Part-Time Work in EU-15 Countries: Trends and Policy," IZA Discussion Papers 1415, Institute for the Study of Labor (IZA).
  8. Fernández-Kranz, Daniel & Rodríguez-Planas, Núria, 2011. "The part-time pay penalty in a segmented labor market," Labour Economics, Elsevier, Elsevier, vol. 18(5), pages 591-606, October.
  9. Nicola-Maria Riley, 1997. "Determinants of Union Membership: A Review," LABOUR, CEIS, CEIS, vol. 11(2), pages 265-301, 06.
  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. Shoshana Neuman & Ronald Oaxaca, 2004. "Wage Decompositions with Selectivity-Corrected Wage Equations: A Methodological Note," Journal of Economic Inequality, Springer, Springer, vol. 2(1), pages 3-10, April.
  12. Maria Jepsen & Sile Padraigin O'Dorchai & Robert Plasman & François Rycx, 2005. "The wage penalty induced by part-time work: the case of Belgium," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, ULB -- Universite Libre de Bruxelles, vol. 48(1-2), pages 73-94.
  13. 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.
  14. Lindbeck, Assar & Snower, Dennis J, 2000. "Multitask Learning and the Reorganization of Work: From Tayloristic to Holistic Organization," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 18(3), pages 353-76, July.
  15. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, Econometric Society, vol. 51(2), pages 507-12, March.
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Citations

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Cited by:
  1. 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.
  2. Blau, Francine D. & Kahn, Lawrence M., 2013. "Female Labor Supply: Why is the US Falling Behind?," IZA Discussion Papers 7140, Institute for the Study of Labor (IZA).
  3. 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).
  4. 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.
  5. Eleonora Matteazzi & Ariane Pailhé & Anne Solaz, 2013. "Does Part-Time Employment Widen the Gender Wage Gap? Evidence from Twelve European Countries," Working Papers 293, ECINEQ, Society for the Study of Economic Inequality.

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