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The Determinants of Part-Time Work in EU Countries: Empirical Investigations with Macro-Panel Data

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Author Info

  • Buddelmeyer, Hielke

    ()
    (Melbourne Institute of Applied Economic and Social Research)

  • Mourre, Gilles

    ()
    (European Commission)

  • Ward-Warmedinger, Melanie E.

    ()
    (European Central Bank)

Abstract

This paper aims to identify the contribution of the business cycle and structural factors to the development of part-time employment in the EU-15 countries, through the exploitation of both cross-sectional and time series variations over the past two decades. Key results include that the business cycle is found to exert a negative effect on part-time employment developments. This is consistent with firms utilising part-time employment as a means of adjusting their labour force to economic conditions. Correspondingly, involuntary part-time employment is found to be countercyclical, being higher in troughs of economic activity. Splitting our sample reveals a very significant effect of the business cycle on the rate of part-time work for young and male prime-age workers. Conversely, the effect is very weak for women and insignificant for older workers. Institutions and other structural factors are also found to be significant and important determinants of the rate of part-time employment. Changes in legislation to part-time employment are found to be effective, having a strong and positive impact on part-time employment developments. Moreover, employment protection legislation is positively correlated with the part-time employment rate, which is consistent with the use of part-time work as a tool for enhancing flexibility in the presence of rigid labour markets. Less robust evidence suggests the presence of unemployment traps for some potential part-time workers. Cross-country evidence also indicates that the lower labour costs borne by firms when employing part-time workers has a large and positive influence on the part-time employment rate.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1361.

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Length: 39 pages
Date of creation: Oct 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1361

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Related research

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

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References

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  1. Jacqueline O'Reilly & Silke Bothfeld, 2002. "What happens after working part time? Integration, maintenance or exclusionary transitions in Britain and western Germany," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 26(4), pages 409-439, July.
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  11. Florence Jaumotte, 2003. "Female Labour Force Participation: Past Trends and Main Determinants in OECD Countries," OECD Economics Department Working Papers 376, OECD Publishing.
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  13. Rob Euwals & Maurice Hogerbrugge, 2004. "Explaining the growth of part-time employment; factors of supply and demand," CPB Discussion Paper 31, CPB Netherlands Bureau for Economic Policy Analysis.
  14. L. Nunziata, 2002. "Institutions and Wage Determination: A Multi-Country Approach," Working Papers 433, Dipartimento Scienze Economiche, Universita' di Bologna.
  15. Garry F. Barrett & Denise J. Doiron, 2001. "Working part time: by choice or by constraint," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 1042-1065, November.
  16. Buddelmeyer, Hielke & Mourre, Gilles & Ward-Warmedinger, Melanie E., 2005. "Part-Time Work in EU Countries: Labour Market Mobility, Entry and Exit," IZA Discussion Papers 1550, Institute for the Study of Labor (IZA).
  17. Farber, Henry S, 1999. "Alternative and Part-Time Employment Arrangements as a Response to Job Loss," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 17(4), pages S142-69, October.
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Citations

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Cited by:
  1. Pfeifer, Christian, 2007. "Eine theoretische und empirische Analyse der betrieblichen Determinanten von Teilzeitarbeit, Mini- und Midi-Jobs (A theoretical and empirical analysis of the company determinants of part-time work, mi," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 65-76.
  2. Carone, Giuseppe & Denis, Cécile & Mc Morrow, Kieran & Mourre, Gilles & Röger, Werner, 2006. "Long-term labour productivity and GDP projections for the EU25 Member States : a production function framework," MPRA Paper 744, University Library of Munich, Germany.
  3. Pfeifer, Christian, 2005. "Betriebliche Determinanten von Teilzeitarbeit, Mini- und Midi-Jobs; Eine theoretische und empirische Analyse mit niedersächsischen Betriebsdaten," Hannover Economic Papers (HEP), Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät dp-324, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  4. Lei Delsen & Erik Poutsma, 2005. "Labour market institutions and economic performance in the Netherlands," International Economic Journal, Taylor & Francis Journals, Taylor & Francis Journals, vol. 19(2), pages 169-196.
  5. Klinger, Sabine & Wolf, Katja, 2008. "What explains changes in full-time and part-time employment in Western Germany? : a new method on an old question," IAB Discussion Paper 200807, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  6. 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).
  7. 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.
  8. Joanna Abhayaratna & Les Andrews & Hudan Nuch & Troy Podbury, 2008. "Part Time Employment: the Australian Experience," Staff Working Papers, Productivity Commission, Government of Australia 0805, Productivity Commission, Government of Australia.
  9. Jeroen Horemans & Ive Marx, 2013. "In-work poverty in times of crisis: do part-timers fare worse?," ImPRovE Working Papers, Herman Deleeck Centre for Social Policy, University of Antwerp 13/14, Herman Deleeck Centre for Social Policy, University of Antwerp.
  10. Helena Corrales Herrero & Beatriz Rodríguez Prado, 2011. "El empleo a tiempo parcial entre los jóvenes: Puente o trampa," Investigaciones de Economía de la Educación volume 6, Asociación de Economía de la Educación, in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 42, pages 677-692 Asociación de Economía de la Educación.
  11. Euwals, Rob & Hogerbrugge, Maurice, 2006. "Explaining the Growth of Part-Time Employment: Factors of Supply and Demand," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5595, C.E.P.R. Discussion Papers.

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