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Is part-time employment beneficial for firm productivity?

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  • Nelen Annemarie
  • Grip Andries de
  • Fouarge Didier

    (METEOR)

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 Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) in its series Research Memorandum with number 007.

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Date of creation: 2011
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Handle: RePEc:unm:umamet:2011007

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Keywords: labour economics ;

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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," CEP Discussion Papers, Centre for Economic Performance, LSE dp0674, Centre for Economic Performance, LSE.
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  15. Daniel Aaronson & Eric French, 2001. "The effect of part-time work on wages: evidence from the Social Security rules," Working Paper Series, Federal Reserve Bank of Chicago WP-01-20, Federal Reserve Bank of Chicago.
  16. Virginie Pe�rotin & Andrew Robinson, 2000. "Employee Participation and Equal Opportunities Practices: Productivity Effect and Potential Complementarities," British Journal of Industrial Relations, London School of Economics, London School of Economics, vol. 38(4), pages 557-583, December.
  17. Paul Osterman, 1994. "How common is workplace transformation and who adopts it?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(2), pages 173-188, January.
  18. Leslie, Derek G & Wise, John, 1980. "The Productivity of Hours in U.K. Manufacturing and Production Industries," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 90(357), pages 74-84, March.
  19. John Baffoe-Bonnie, 2004. "Interindustry part-time and full-time wage differentials: regional and national analysis," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(2), pages 107-118.
  20. Craine, Roger, 1973. "On the Service Flow from Labour," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 40(11), pages 39-46, January.
  21. 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, De Boeck Université, vol. 0(2), pages 117-140.
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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. Bart Loog & Thomas Dohmen & Maarten Vendrik, 2013. "The Scope for Increasing Total Hours Worked," De Economist, Springer, Springer, vol. 161(2), pages 157-174, June.
  2. Andrea Garnero & Stephan Kampelmann & François Rycx, 2013. "Part-time Work, Wages and Productivity:Evidence from Belgian Matched Panel Data," DULBEA Working Papers, ULB -- Universite Libre de Bruxelles 13-08, ULB -- Universite Libre de Bruxelles.
  3. Andreas Koch & Jochen Späth & Harald Strotmann, 2012. "The Role of Employees for Post-Entry Firm Growth," IAW Discussion Papers, Institut für Angewandte Wirtschaftsforschung (IAW) 78, Institut für Angewandte Wirtschaftsforschung (IAW).
  4. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, American Economic Association, vol. 104(4), pages 1091-1119, April.

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