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Do Women Expect Wage Cuts for Part-Time Work?

Author

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  • Schrenker, Annekatrin

    (DIW and FU Berlin)

Abstract

Wage expectations for full- and part-time employment are key for understanding the labor supply decisions of women. However, whether women expect different wages between part-time and full-time work is not fully understood. Using German survey data, I quantify the expected full-time/part-time wage differential for a representative sample of female workers. I document that women, on average, expect only minor part-time wage penalties (1-3 percent). Comparing beliefs to selectivity-adjusted estimates of the part-time wage gap indicates that women’s mean expectations are realistic. I also show that women with children and those in managerial positions expect sizeable part-time wage cuts, with mothers overestimating the part-time wage penalty.

Suggested Citation

  • Schrenker, Annekatrin, 2020. "Do Women Expect Wage Cuts for Part-Time Work?," Rationality and Competition Discussion Paper Series 257, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:257
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    More about this item

    Keywords

    expectations; female labor supply; part-time wage gap;
    All these keywords.

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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