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Back-to-front Down-under? Part-time/Full-time Wage Differentials in Australia

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Author Info

  • Booth, Alison L.

    ()
    (Australian National University)

  • Wood, Margi

    ()
    (Australian National University)

Abstract

In 2003, part-time employment in Australia accounted for over 42% of the Australian female workforce, nearly 17% of the male workforce, and represented 28% of total employment. Of the OECD countries, only the Netherlands has a higher proportion of working women employed part-time and Australia tops the OECD league in terms of its proportion of working men who are part-time. In this paper we investigate part-time full-time hourly wage gaps using important new panel data from the first four waves of the new Household, Income and Labour Dynamics in Australia Survey. We find that, once unobserved individual heterogeneity has been taken into account, part-time men and women typically earn an hourly pay premium. This premium varies with casual employment status, but is always positive, a result that survives our robustness checks. We advance some hypotheses as to why there is a part-time pay advantage in Australia.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2268.

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Length: 33 pages
Date of creation: Aug 2006
Date of revision:
Publication status: published in: Industrial Relations, 2008, 47 (1), 114-135
Handle: RePEc:iza:izadps:dp2268

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Keywords: gender; efficiency hours; part-time; full-time;

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References

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  1. Booth, Alison L & van Ours, Jan C, 2005. "Hours of Work and Gender Identity: Does Part-Time Work Make the Family Happier?," CEPR Discussion Papers 5438, C.E.P.R. Discussion Papers.
  2. 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, vol. 7(2), pages 231-254, June.
  3. Booth, Alison & Ravallion, Martin, 1993. "Employment and Length of the Working Week in a Unionized Economy in which Hours of Work Influence Productivity," The Economic Record, The Economic Society of Australia, vol. 69(207), pages 428-36, December.
  4. 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.
  5. Hirsch, Barry, 2004. "Why Do Part-Time Workers Earn Less? The Role of Worker and Job Skills," IZA Discussion Papers 1261, Institute for the Study of Labor (IZA).
  6. Main, Brian G M, 1988. "Hourly Earnings of Female Part-time versus Full-time Employees," The Manchester School of Economic & Social Studies, University of Manchester, vol. 56(4), pages 331-44, December.
  7. Mark Wooden & Diana Warren, 2003. "The Characteristics of Casual and Fixed-Term Employment: Evidence from the HILDA Survey," Melbourne Institute Working Paper Series wp2003n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  8. Wayne Simpson, 1986. "Analysis of Part-Time Pay in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 19(4), pages 798-807, November.
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Cited by:
  1. Sile Padraigin O'Dorchai & Robert Plasman & François Rycx, 2007. "The part-time wage penalty in European countries: how large is it for men?," ULB Institutional Repository 2013/8555, ULB -- Universite Libre de Bruxelles.
  2. Polidano, Cain & Tabasso, Domenico, 2013. "Making It Real: The Benefits of Workplace Learning in Upper-Secondary VET Courses," IZA Discussion Papers 7633, Institute for the Study of Labor (IZA).
  3. Lixin Cai, 2009. "Effects of Health on Wages of Australian Men," The Economic Record, The Economic Society of Australia, vol. 85(270), pages 290-306, 09.
  4. Fernández-Kranz, Daniel & Rodríguez-Planas, Núria, 2009. "The Part-Time Pay Penalty in a Segmented Labor Market," IZA Discussion Papers 4342, Institute for the Study of Labor (IZA).
  5. Fernández-Kranz, Daniel & Paul, Marie & Rodríguez-Planas, Núria, 2011. "Part-Time Work, Fixed-Term Contracts, and the Returns to Experience," IZA Discussion Papers 5815, Institute for the Study of Labor (IZA).
  6. Karabchuk, Tatiana, 2012. "Part-time and temporary workers in Russia: winners or losers?," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 45(1), pages 23-39.
  7. Mark Wooden & Diana Warren & Robert Drago, 2007. "Working Time Mismatch and Subjective Well-Being," Melbourne Institute Working Paper Series wp2007n29, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  8. MORIKAWA Masayuki, 2010. "Insecurity of Employment and Work-Life Balance: From the viewpoint of compensating wage differentials," Discussion papers 10052, Research Institute of Economy, Trade and Industry (RIETI).

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