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The part-time pay penalty: earnings trajectories of British Women

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  • Sara Connolly
  • Mary Gregory

Abstract

Part-time work among British women is extensive, and the (raw) pay penalty large. Since part-time work features most prominently when women are in their 30s, the peak childcare years and a crucial period for career building, its impact on subsequent earnings trajectories is important from a social as well as individual perspective. We find that part-time work experience gives a very low return in future earnings, particularly when acquired in lower-skill jobs. In addition, one-quarter of women in high-skill jobs downgrade occupationally on switching to part-time work, rising to 43% among those who also change employer. In combination these effects give an immediate earnings drop of 32%, followed by a permanently lower trajectory. It is these accompanying changes, rather than part-time status itself, which damage earnings. Return to full-time work, even with reversal of the occupational downgrading, brings only a partial recovery; without it the earnings losses continue to grow. Copyright 2009 Oxford University Press 2008 All rights reserved, Oxford University Press.

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  • Sara Connolly & Mary Gregory, 2009. "The part-time pay penalty: earnings trajectories of British Women," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages 76-97, April.
  • Handle: RePEc:oup:oxecpp:v:61:y:2009:i:suppl_1:p:i76-i97
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    File URL: http://hdl.handle.net/10.1093/oep/gpn043
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    Cited by:

    1. Picchio, Matteo & van Ours, Jan C., 2016. "Gender and the effect of working hours on firm-sponsored training," Journal of Economic Behavior & Organization, Elsevier, vol. 125(C), pages 192-211.
    2. repec:spr:jlabre:v:38:y:2017:i:2:d:10.1007_s12122-017-9242-y is not listed on IDEAS
    3. Biewen, Martin & Fitzenberger, Bernd & de Lazzer, Jakob, 2017. "Rising wage inequality in Germany: Increasing heterogeneity and changing selection into full-time work," ZEW Discussion Papers 17-048, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    4. Fernández-Kranz, Daniel & Rodríguez-Planas, Núria, 2011. "The part-time pay penalty in a segmented labor market," Labour Economics, Elsevier, vol. 18(5), pages 591-606, October.
    5. Sara Connolly & Mary Gregory, 2010. "Dual tracks: part-time work in life-cycle employment for British women," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 907-931, June.
    6. Daniel Fernández-Kranz & Marie Paul & Núria Rodríguez-Planas, 2015. "Part-Time Work, Fixed-Term Contracts, and the Returns to Experience," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(4), pages 512-541, August.
    7. Gerry H. Makepeace & Michael J. Peel, 2013. "Combining information from Heckman and matching estimators: testing and controlling for hidden bias," Economics Bulletin, AccessEcon, vol. 33(3), pages 2422-2436.
    8. Elsayed, A.E.A. & de Grip, A. & Fouarge, D., 2014. "Job tasks, computer use, and the decreasing part-time pay penalty for women in the UK," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    9. McGinnity F & Russell H, 2011. "Workplace Equality in the Recession? The Incidence and Impact of Equality Policies and Flexible Working," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT200.
    10. Raul Ramos & Esteban Sanromá & Hipólito Simón, 2015. "An analysis of wage differentials between full- and part-time workers in Spain," Working Papers XREAP2015-02, Xarxa de Referència en Economia Aplicada (XREAP), revised Aug 2015.
    11. G. Guidetti & G. Pedrini, 2015. "Systemic flexibility and human capital development: the relationship between non-standard employment and workplace training," Working Papers wp1019, Dipartimento Scienze Economiche, Universita' di Bologna.
    12. Joan Rodgers & Iris Day, 2013. "The Premium for Part-Time Work in Australia," Economics Working Papers wp13-04, School of Economics, University of Wollongong, NSW, Australia.
    13. Jeroen Horemans, 2017. "Atypical Employment and In-Work Poverty: A Different Story for Part-Timers and Temporary Workers?," Working Papers 1701, Herman Deleeck Centre for Social Policy, University of Antwerp.
    14. Taylor, Mark P., 2013. "The labour market impacts of leaving education when unemployment is high: evidence from Britain," ISER Working Paper Series 2013-12, Institute for Social and Economic Research.
    15. Fernández-Kranz Daniel & Aitor Lacuesta & Núria Rodríguez-Planas, 2013. "The Motherhood Earnings Dip: Evidence from Administrative Records," Journal of Human Resources, University of Wisconsin Press, vol. 48(1), pages 169-197.
    16. Muge Adalet McGowan & Dan Andrews, 2015. "Skill Mismatch and Public Policy in OECD Countries," OECD Economics Department Working Papers 1210, OECD Publishing.
    17. Wolf, Elke, 2013. "The German part-time wage gap: bad news for men," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79969, Verein für Socialpolitik / German Economic Association.

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