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Part-Time Wage-Gap in Germany: Evidence across the Wage Distribution

Author

Listed:
  • Piret Tõnurist

    () (Tallinn University of Technology)

  • Dimitris Pavlopoulos

    (Vrije Universiteit Amsterdam)

Abstract

This article uses insights from labour-market segmentation theory in order to investigate the wage differences between part-time and full-time workers in Germany at different parts of the wage distribution. This is accomplished with the use of a quintile regression and panel data from the German Socio Economic Panel (1991-2012). To obtain insights on the part-time wage differentials, we apply a counterfactual wage decomposition analysis. The results indicate the presence of a part-time wage penalty for involuntary part-time work at the low and middle parts of the wage distribution. In contrast, a wage premium for voluntary part-time work emerges, especially at the top of the distribution. Moreover, at the lower end of the wage distribution, part-time workers receive lower returns for their labour market characteristics, indicating the segmentation of the labour market. In contrast, the difference in the characteristics of part-timers and full-timers fully explains the part-time wage gap at the top of the wage distribution.

Suggested Citation

  • Piret Tõnurist & Dimitris Pavlopoulos, 2013. "Part-Time Wage-Gap in Germany: Evidence across the Wage Distribution," Journal of Income Distribution, Ad libros publications inc., vol. 22(2), pages 124-147, June.
  • Handle: RePEc:jid:journl:y:2013:v:22:i:2:p:124-147
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    Cited by:

    1. Germana Bottone, 2020. "The Effect of Globalisation on Labour Market Institutions in Europe," Working Papers 0052, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.

    More about this item

    Keywords

    part-time employment; wage gap decomposition; labour market segmentation;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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