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Is Part-Time Employment Beneficial for Firm Productivity?

  • Annemarie Kunn-Nelen
  • Andries De Grip
  • Didier Fouarge

With this article, the authors are the first to analyze and explain the relationship between part-time employment and firm productivity. Using a unique data set on the Dutch pharmacy sector that includes the working hours of all employees and a hard physical measure of firm productivity, the authors estimate a production function including heterogeneous employment shares based on working hours. The authors find that firms with a large part-time employment share are more productive than firms with a large share of full-time workers: a 10% increase in the part-time share is associated with 4.8% higher productivity. Additional data on the timing of labor demand show that this can be explained by a different allocation of part-timers compared with full-timers. This enables firms with large part-time employment shares to allocate their labor force more efficiently across working days.

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Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 66 (2013)
Issue (Month): 5 (October)
Pages: 1172-1191

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Handle: RePEc:ilr:articl:v:66:y:2013:i:5:p:1172-1191
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  19. Sébastien Roux, 2007. "Les gains de la flexibilité d'emploi pour les entreprises : le travail à temps partiel et de courte durée," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 117-140.
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