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Part-time hours and wages

Author

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  • Moro-Egido, Ana I.
  • Naval, Joaquín
  • Silva, José I.

Abstract

This paper examines the factors contributing to wage discrepancies between part-time and full-time employment. We first theoretically explore the relationship between hours and wages within the presence of a wage bargaining model involving the union and the firm. The model incorporates workers’ coordination costs and reduced bargaining power for part-time positions. These elements are linked to the hours gap between part- and full-time workers within the firm, also referred to as the full-time equivalent. Using harmonized data from the 2018 Structure of Earnings Survey for 10 European countries, we document a strong relationship between full-time equivalent status and the part-time wage penalty. This relationship is observed consistently across demographic groups defined by gender, education, age, occupation, and firm size. Finally, we show that controlling for the full-time equivalent substantially reduces the unexplained component of the part-time wage gap.

Suggested Citation

  • Moro-Egido, Ana I. & Naval, Joaquín & Silva, José I., 2026. "Part-time hours and wages," Economic Analysis and Policy, Elsevier, vol. 92(C), pages 1090-1116.
    • Handle: RePEc:eee:ecanpo:v:92:y:2026:i:c:p:1090-1116
    DOI: 10.1016/j.eap.2026.06.039
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    Keywords

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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • 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
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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