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Why Do Firms (Dis)Like Part-Time Contracts?

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Listed:
  • Francesco Devicienti
  • Elena Grinza
  • Davide Vannoni

Abstract

This paper investigates the costs for firms of employing women full-time versus part-time in terms of differential hourly wages. To this end, we use administrative matched employer employee data on the universe of female workers in Italy over 33 years and rely on regression models that control for worker, firm, and job match fixed effects, in addition to several worker-, job-, and firm-level time-varying factors. We find that, when a worker switches from a full-time to a part-time contract within the same firm, she benefits from an increase in the hourly wage. Over the last three decades, these wage premiums have significantly reduced, remaining positive and significant up to 2015. We also find that the part-time premium is pervasive and stable across many different labor market segments and independent of workers’ intrinsic productivity levels. These and other findings appear to be compatible with developments in wage bargaining institutions, whereby more generous conditions can be accorded to part-timers. Coupled with the detrimental effect of part-time work on firm productivity documented by Devicienti et al. (2018), our results contribute to explain why firms are often unwilling to concede part-time positions to employees asking for them.

Suggested Citation

  • Francesco Devicienti & Elena Grinza & Davide Vannoni, 2020. "Why Do Firms (Dis)Like Part-Time Contracts?," Carlo Alberto Notebooks 606, Collegio Carlo Alberto.
  • Handle: RePEc:cca:wpaper:606
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Perché le aziende non amano il part-time
      by Francesco Devicienti in La Voce on 2019-04-30 10:18:31

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    Cited by:

    1. Fanfani, Bernardo, 2022. "Tastes for discrimination in monopsonistic labour markets," Labour Economics, Elsevier, vol. 75(C).
    2. Elena Grinza & Francesco Devicienti & Mariacristina Rossi & Davide Vannoni, 2017. "How Entry into Parenthood Shapes Gender Role Attitudes: New Evidence from Longitudinal UK Data," Working papers 042, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.

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    More about this item

    Keywords

    Part-time/full-time wage differentials; wage bargaining institutions; multiple fixed-effects regressions; administrative matched employer-employee longitudinal data.;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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