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Is part-time employment beneficial for firm productivity?

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  • Nelen, A.C.

    (Research Centre for Educ and Labour Mark)

  • de Grip, A.

    (Research Centre for Educ and Labour Mark)

  • Fouarge, D.

    (Research Centre for Educ and Labour Mark)

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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  • Nelen, A.C. & de Grip, A. & Fouarge, D., 2011. "Is part-time employment beneficial for firm productivity?," Research Memorandum 007, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    • Handle: RePEc:unm:umamet:2011007
    DOI: 10.26481/umamet.2011007
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    1. Does part-time employment increase firm productivity?
      by Economic Logician in Economic Logic on 2011-02-22 21:05:00

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    Cited by:

    1. Rupietta, Kira, 2015. "How does Part-time Work Affect Firm Performance and Innovation Activity?," Working papers 2015/05, Faculty of Business and Economics - University of Basel.
    2. Andrea Garnero, 2016. "Are part-time workers less productive and underpaid?," IZA World of Labor, Institute of Labor Economics (IZA), pages 249-249, April.
    3. Heejung Chung, 2020. "Gender, Flexibility Stigma and the Perceived Negative Consequences of Flexible Working in the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(2), pages 521-545, September.
    4. 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.
    5. Andrea Garnero & Stephan Kampelmann & François Rycx, 2014. "Part-Time Work, Wages, and Productivity," ILR Review, Cornell University, ILR School, vol. 67(3), pages 926-954, July.
    6. Garnero, Andrea & Kampelmann, Stephan & Rycx, François, 2013. "Part-time Work, Wages and Productivity: Evidence from Belgian Matched Panel Data," IZA Discussion Papers 7789, Institute of Labor Economics (IZA).
    7. Francesco Devicienti & Elena Grinza & Davide Vannoni, 2015. "The Impact of Part-Time Work on Firm Total Factor Productivity: Evidence from Italy," Carlo Alberto Notebooks 433, Collegio Carlo Alberto.
    8. Compton, Andrew, 2019. "A Search Theoretic Model of Part-Time Employment and Multiple Job Holdings," MPRA Paper 97003, University Library of Munich, Germany.
    9. Marie Boltz & Bart Cockx & Ana Maria Diaz & Luz Magdalena Salas, 2023. "How does working‐time flexibility affect workers' productivity in a routine job? Evidence from a field experiment," British Journal of Industrial Relations, London School of Economics, vol. 61(1), pages 159-187, March.
    10. Collewet, Marion & Sauermann, Jan, 2017. "Working hours and productivity," Labour Economics, Elsevier, vol. 47(C), pages 96-106.
    11. Jos L. T. Blanc & Alex A. S. van Heezik & Bas Blank, 2023. "Productivity and efficiency of central government departments: a mixed-effect model applied to Dutch data in the period 2012-2019," Public Sector Economics, Institute of Public Finance, vol. 47(3), pages 335-351.
    12. Picchio, Matteo & van Ours, Jan C., 2016. "Gender and the effect of working hours on firm-sponsored training," Journal of Economic Behavior & Organization, Elsevier, vol. 125(C), pages 192-211.
    13. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    14. Bart Loog & Thomas Dohmen & Maarten Vendrik, 2013. "The Scope for Increasing Total Hours Worked," De Economist, Springer, vol. 161(2), pages 157-174, June.
    15. Yonezawa, Koichi & Gómez, Miguel I. & McLaughlin, Edward W., 2022. "Impacts of Minimum Wage Increases in the US Retail Sector: Full-Time versus Part-Time Employment," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(2), May.
    16. Meekes, Jordy & Hassink, Wolter H.J., 2022. "Gender differences in job flexibility: Commutes and working hours after job loss," Journal of Urban Economics, Elsevier, vol. 129(C).
    17. Boltz, Marie & Cockx, Bart & Diaz, Ana Maria & Salas, Luz Magdalena, 2020. "How does working-time flexibility affect workers’ productivity in a routine job?," ROA Research Memorandum 010, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    18. Meekes, Jordy & Hassink, Wolter, 2020. "Fired and Pregnant: Gender Differences in Job Flexibility Outcomes after Job Loss," IZA Discussion Papers 13779, Institute of Labor Economics (IZA).
    19. Gabriela Galassi, 2021. "Labor Demand Response to Labor Supply Incentives: Lessons from the German Mini-Job Reform," Staff Working Papers 21-15, Bank of Canada.
    20. X. Penny Li & Marion Joppe & Scott M. Meis, 2017. "Human resource management impacts on labour productivity in tourism," Tourism Economics, , vol. 23(5), pages 1028-1041, August.
    21. 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.
    22. Galassi, Gabriela, 2021. "Labor Demand Response to Labor Supply Incentives: Lessons from the German Mini-Job Reform," IZA Discussion Papers 14248, Institute of Labor Economics (IZA).
    23. Marta C.Lopes & Alessandro Tondini, 2022. "Firm-Level Effects of Reductions in Working Hours," FBK-IRVAPP Working Papers 2022-05, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.

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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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