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Should Part-Time Jobs be Subsidised?


  • Alexis Parmentier


This article shows that in the context of a matching model with two imperfectly substitutable sectors, the coexistence of jobs characterised by different working hours can be explained by the capital intensities specific to each sector. Firms alone finance the capital used in the production process, so that a hold-up problem appears in wage negotiations. When the job-seeking of (ex ante homogeneous) workers is random, this phenomenon generates involuntary part-time work. Furthermore, the proportion of part-time jobs and the socially efficient total number of jobs are incompatible at the laissez-faire equilibrium. Consequently, heavier taxes (or lower subsidies) on part-time jobs relative to full-time jobs improve economic efficiency and might thereby stimulate participation in the labour market.

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  • Alexis Parmentier, 2010. "Should Part-Time Jobs be Subsidised?," Annals of Economics and Statistics, GENES, issue 99-100, pages 343-364.
  • Handle: RePEc:adr:anecst:y:2010:i:99-100:p:343-364

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    References listed on IDEAS

    1. Aeberhardt, Romain & Pouget, Julien, 2007. "National Origin Wage Differentials in France: Evidence from Matched Employer-Employee Data," IZA Discussion Papers 2779, Institute for the Study of Labor (IZA).
    2. Rachid Boumahdi & Jean-François Giret, 2005. "Une analyse économétrique des disparités d'accès à l'emploi et de rémunérations entre jeunes d'origine française et jeunes issus de l'immigration," Revue économique, Presses de Sciences-Po, vol. 56(3), pages 625-636.
    3. Pascale Petit, 2003. "Comment évaluer la discrimination à l'embauche ?," Revue Française d'Économie, Programme National Persée, vol. 17(3), pages 55-87.
    4. Riach, Peter A & Rich, Judith, 1991. "Testing for Racial Discrimination in the Labour Market," Cambridge Journal of Economics, Oxford University Press, vol. 15(3), pages 239-256, September.
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