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Employment Adjustment and Part-Time Work: Lessons from the United States and the United Kingdom

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  • Daniel Borowczyk-Martins
  • Etienne Lalé

Abstract

We document that fluctuations in part-time employment play a major role in movements in hours per worker during cyclical swings in the labor market. Building on this result, we develop a stock-flow framework to describe the dynamics of part-time employment. The evolution of part-time employment is predominantly explained by cyclical changes in transitions between full-time and part-time employment. Those transitions occur overwhelmingly at the same employer, entail sizable changes in individual working hours and are associated with an increase in involuntary part-time work. Our findings provide a novel understanding of the cyclical dynamics of labor adjustment on the intensive margin.

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  • Daniel Borowczyk-Martins & Etienne Lalé, 2019. "Employment Adjustment and Part-Time Work: Lessons from the United States and the United Kingdom," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(1), pages 389-435, January.
  • Handle: RePEc:aea:aejmac:v:11:y:2019:i:1:p:389-435
    Note: DOI: 10.1257/mac.20160078
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    Cited by:

    1. Borowczyk-Martins, Daniel & Lalé, Etienne, 2018. "The Ins and Outs of Involuntary Part-Time Employment," IZA Discussion Papers 11826, Institute of Labor Economics (IZA).
    2. Lalé, Etienne, 2019. "Search and Multiple Jobholding," IZA Discussion Papers 12294, Institute of Labor Economics (IZA).
    3. repec:eee:ecolet:v:183:y:2019:i:c:14 is not listed on IDEAS
    4. Toshihiko Mukoyama & Mototsugu Shintani & Kazuhiro Teramoto, 2018. "Cyclical Part-Time Employment in an Estimated New Keynesian Model with Search Frictions," Working Papers gueconwpa~18-18-04, Georgetown University, Department of Economics.

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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