Interindustry part-time and full-time wage differentials: regional and national analysis
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.
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Volume (Year): 36 (2004)
Issue (Month): 2 ()
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References listed on IDEAS
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- 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.
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- 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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"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- 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 529-38, November.
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