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Is Part-Time Employment Beneficial for Firm Productivity?

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Author Info

  • Künn-Nelen, Annemarie

    ()
    (ROA, Maastricht University)

  • de Grip, Andries

    ()
    (ROA, Maastricht University)

  • Fouarge, Didier

    ()
    (ROA, Maastricht University)

Abstract

This paper analyzes whether part-time employment is beneficial for firm productivity in the service sector. Using a unique dataset on the Dutch pharmacy sector that includes the work hours of all employees and a “hard” physical measure of firm productivity, we estimate a production function including heterogeneous employment shares based on work hours. We find that a larger part-time employment share leads to greater firm productivity. Additional data on the timing of labor demand show that part-time employment enables firms to allocate labor more efficiently. First, firms with part-time workers can bridge the gap between opening hours and a full-time work week. Second, we find that during opening hours part-time workers are scheduled differently than full-timers. For example, we find that part-time workers enable their full-time colleagues to take lunch breaks so that the firm can remain open during these times.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5423.

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Length: 37 pages
Date of creation: Jan 2011
Date of revision:
Publication status: published in: Industrial and Labor Relations Review, 2013, 66 (5), 1172-1191
Handle: RePEc:iza:izadps:dp5423

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Keywords: timing of labor demand; heterogeneous labor; matched employer-employee data; allocation of labor;

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References

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  1. Lorraine Dearden & Howard Reed & John Van Reenen, 2005. "The impact of training on productivity and wages: evidence from British panel data," IFS Working Papers W05/16, Institute for Fiscal Studies.
  2. Iranzo, Susana & Schivardi, Fabiano & Tosetti, Elisa, 2006. "Skill Dispersion and Firm Productivity: An Analysis with Employer-Employee Matched Data," CEPR Discussion Papers 5539, C.E.P.R. Discussion Papers.
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  6. Sébastien Roux, 2007. "Les gains de la flexibilité d'emploi pour les entreprises : le travail à temps partiel et de courte durée," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 117-140.
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  15. Leslie, Derek G & Wise, John, 1980. "The Productivity of Hours in U.K. Manufacturing and Production Industries," Economic Journal, Royal Economic Society, vol. 90(357), pages 74-84, March.
  16. Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70, pages 538.
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  18. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  19. 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.
  20. 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.
  21. Euwals, Rob & Hogerbrugge, Maurice, 2004. "Explaining the Growth of Part-Time Employment: Factors of Supply and Demand," IZA Discussion Papers 1124, Institute for the Study of Labor (IZA).
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Does part-time employment increase firm productivity?
    by Economic Logician in Economic Logic on 2011-02-22 15:05:00
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Cited by:
  1. Garnero, Andrea & Kampelmann, Stephan & Rycx, Francois, 2013. "Part-time Work, Wages and Productivity: Evidence from Belgian Matched Panel Data," IZA Discussion Papers 7789, Institute for the Study of Labor (IZA).
  2. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
  3. Andreas Koch & Jochen Späth & Harald Strotmann, 2013. "The role of employees for post-entry firm growth," Small Business Economics, Springer, vol. 41(3), pages 733-755, October.
  4. Bart Loog & Thomas Dohmen & Maarten Vendrik, 2013. "The Scope for Increasing Total Hours Worked," De Economist, Springer, vol. 161(2), pages 157-174, June.

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