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How Bad Is Involuntary Part-time Work?

Author

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  • Borowczyk-Martins, Daniel

    (Copenhagen Business School)

  • Lalé, Etienne

    (York University, Canada)

Abstract

We use a set of empirical and analytical tools to conduct parallel analyses of involuntary part-time work and unemployment in the U.S. labor market. In the empirical analysis, we document that the similar cyclical behavior of involuntary part-time work and unemployment masks major differences in the underlying dynamics. Unlike unemployment, variations in involuntary part-time work are mostly explained by its interaction with full-time employment, and since the Great Recession employed workers are at a greater risk of working part-time involuntarily than being unemployed. In the theoretical analysis, we show that the higher probability of regaining full-time employment is key to distinguish involuntary part-time work from unemployment from a worker's perspective. We also quantify the welfare costs of cyclical fluctuations in involuntary part-time work, and the amplification of these costs arising from the elevated levels of involuntary part-time work observed since the Great Recession.

Suggested Citation

  • Borowczyk-Martins, Daniel & Lalé, Etienne, 2016. "How Bad Is Involuntary Part-time Work?," IZA Discussion Papers 9775, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9775
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    Cited by:

    1. Gianluca Busilacchi & Giovanni Gallo & Matteo Luppi, 2022. "I would like to but I cannot. The determinants of involuntary part-time employment: Evidence from Italy," Center for the Analysis of Public Policies (CAPP) 0177, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    2. Daniel Borowczyk-Martins & Etienne Lalé, 2018. "The welfare effects of involuntary part-time work," Oxford Economic Papers, Oxford University Press, vol. 70(1), pages 183-205.
    3. Sheely, Amanda, 2022. "More than money? Job quality and food insecurity among employed lone mother households in the United States," LSE Research Online Documents on Economics 112504, London School of Economics and Political Science, LSE Library.
    4. Daniel Borowczyk-Martins & Etienne Lalé, 2016. "The Rise of Part-time Employment," Sciences Po publications 2016-04, Sciences Po.
    5. Ayhan GÖRMÜŞ, 2019. "Characteristic of Time-based Underemployment in Turkey: Findings from the Household Labour Force SurveysAbstract:Time-based underemployment is a labour market mismatch that occurs in a circumstance th," Sosyoekonomi Journal, Sosyoekonomi Society.
    6. repec:hal:wpspec:info:hdl:2441/7arg7blugi9b2o08qjafcpg8e2 is not listed on IDEAS
    7. Theresa Markefke & Rebekka Rehm, 2020. "Macroeconomic Determinants of Involuntary Part-Time Employment in Germany," Working Paper Series in Economics 103, University of Cologne, Department of Economics.
    8. Miežienė Rasa & Krutulienė Sandra & Gruževskis Boguslavas, 2021. "Identifying the Main Determinants of Part-Time Employment in EU Countries," Review of Economic Perspectives, Sciendo, vol. 21(2), pages 151-171, June.
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    More about this item

    Keywords

    employment; involuntary part-time work; welfare; Great Recession;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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