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Interindustry part-time and full-time wage differentials: regional and national analysis

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  • John Baffoe-Bonnie

Abstract

This paper provides more evidence that the wage differential is far smaller than is suggested by simple comparison of gross wages of full-time and part-time workers. It is noted that to obtain a more reasonable measure of the full-time and part-time wage differential, it is necessary to adjust for differences in workers' characteristics, labour market conditions and sample selection. It is found that, in general, full-time and part-time workers exhibit different personal characteristics. In particular, full-time workers possess more human capital and experience than part-timers. Also, labour market conditions such as unions and pension plans favour full-timers. These differences may partly account for the wage disparity between full-time and part-time workers. It was noted that the nonrandomness of the workers into full-time and part-time jobs influences the wage determination of both full-time and part-time workers. The results indicate that the adjustment of the wage equations to reflect the above mentioned differences reduces the national wage differential between full-time and part-time workers by 10%. The reduction is even larger across regions and industries. Another finding was that the wage determination processes between full-time and part-time workers do differ.

Suggested Citation

  • John Baffoe-Bonnie, 2004. "Interindustry part-time and full-time wage differentials: regional and national analysis," Applied Economics, Taylor & Francis Journals, vol. 36(2), pages 107-118.
  • Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:107-118 DOI: 10.1080/0003684042000174010
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    1. Schiller, Bradley R & Weiss, Randall D, 1980. "Pensions and Wages: A Test for Equalizing Differences," The Review of Economics and Statistics, MIT Press, vol. 62(4), pages 529-538, November.
    2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    3. Dickens, William T & Lang, Kevin, 1985. "A Test of Dual Labor Market Theory," American Economic Review, American Economic Association, vol. 75(4), pages 792-805, September.
    4. Susan L. Averett & Julie L. Hotchkiss, 2000. "Female Labor Supply With A Discontinuous, Nonconvex Budget Constraint: Incorporation Of A Part-Time/Full-Time Wage Differential," The Review of Economics and Statistics, MIT Press, vol. 79(3), pages 461-470, August.
    5. John F. Ermisch & Robert E. Wright, 1993. "Wage Offers and Full-Time and Part-Time Employment by British Women," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 111-133.
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    Cited by:

    1. Alderighi, Marco & Gaggero, Alberto A. & Piga, Claudio A., 2015. "The effect of code-share agreements on the temporal profile of airline fares," Transportation Research Part A: Policy and Practice, Elsevier, vol. 79(C), pages 42-54.
    2. Elke Wolf, 2014. "The German Part-Time Wage Gap: Bad News for Men," SOEPpapers on Multidisciplinary Panel Data Research 663, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Annemarie Künn-Nelen & Andries de Grip & Didier Fouarge, 2013. "Is Part-Time Employment Beneficial for Firm Productivity?," ILR Review, Cornell University, ILR School, vol. 66(5), pages 1172-1191, October.
    4. Devicienti, Francesco & Grinza, Elena & Vannoni, Davide, 2015. "The Impact of Part-Time Work on Firm Total Factor Productivity: Evidence from Italy," IZA Discussion Papers 9463, Institute for the Study of Labor (IZA).
    5. repec:bla:coecpo:v:35:y:2017:i:4:p:716-734 is not listed on IDEAS
    6. Gesine Stephan & Knut Gerlach, 2005. "Wage settlements and wage setting: results from a multi-level model," Applied Economics, Taylor & Francis Journals, vol. 37(20), pages 2297-2306.
    7. Valletta, Robert G. & Bengali, Leila & van der List, Catherine, 2015. "Cyclical and market determinants of involuntary part-time employment," Working Paper Series 2015-19, Federal Reserve Bank of San Francisco.
    8. Dongyeol Lee & Hyunjoon Lim, 2014. "Nonlinearity in Nexus between Working Hours and Productivity," Working Papers 2014-24, Economic Research Institute, Bank of Korea.
    9. Eden,Maya, 2016. "The week," Policy Research Working Paper Series 7598, The World Bank.
    10. 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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