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The premium for part-time work in Australia

Author

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  • Joan Rodgers

    (University of Wollongong)

  • Iris Day

    (University of Wollongong)

Abstract

We use fixed effects and difference-in-differences methodologies to investigate the nature of Australia’s part-time wage premium, a phenomenon not observed in other countries. Salary sacrifice and non-cash benefits, previously unexplored explanations, are eliminated. The premium is not explained by occupation and it is observed for people with only one change of employment status and for those with multiple changes. We find that changing from full-time to part-time work with the same employer results in a large and sustained increase in the hourly wage, whereas a temporary decrease in the hourly wage accompanies a change from part-time to full-time work with the same employer. Notably, we find no significant wage change when a move between full-time and part-time work is accompanied by a change of employer.

Suggested Citation

  • Joan Rodgers & Iris Day, 2015. "The premium for part-time work in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(3), pages 281-305.
    • Handle: RePEc:ozl:journl:v:18:y:2015:i:3:p:281-305
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    References listed on IDEAS

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    Cited by:

    1. Devicienti, Francesco & Grinza, Elena & Vannoni, Davide, 2020. "Why do firms (dis)like part-time contracts?," Labour Economics, Elsevier, vol. 65(C).

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    More about this item

    Keywords

    Part-time employment; Wage differentials; labour supply;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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