IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The German Part-Time Wage Gap: Bad News for Men

  • Elke Wolf
Registered author(s):

    Despite the increasing incidence of part-time employment in Germany, the effects on wage rates are studied rarely. I therefore use SOEP panel data from 1984 to 2010 and apply different econometric approaches and definitions of part-time work to measure the socalled part-time wage gap of both, men and women in East and West Germany. A very robust finding is that part-time working men are subject to higher wage penalties than women. Accounting for all available observed as well as time-constant unobserved individual characteristics yields a wage cut of about 10 percent in East and West Germany. Furthermore, the type of contract makes a big difference. While marginal employees earn considerable lower wage rates, irrespective of region and sex, reduced working hours covered with social security do not seem to be to the detriment of women once differences in observed characteristics are taken into account. Fixed-effects panel estimates even yield slightly benefits from working part-time. Nonetheless, long part-time spells may cause financial drawbacks for women, because experience in part-time employment generates lower or even no positive returns. Another novel of my study is the look at the part-time wage gap over the years. The empirical evidence reveals that wage differentials in West-Germany increased over time. Since this trend disappears for men, as soon as individual fixed-effects are disentangled, I suppose that selection of men with progressively unfavourable labour market characteristics triggered this downward slope. In contrast, the downtrend of the female part-time wage gap seems to be caused by the increasing share of marginal employees, who exhibit a significant and larger wage cut compared to standard part-time women.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.466650.de/diw_sp0663.pdf
    Download Restriction: no

    Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 663.

    as
    in new window

    Length: 33 p.
    Date of creation: 2014
    Date of revision:
    Handle: RePEc:diw:diwsop:diw_sp663
    Contact details of provider: Postal: Mohrenstraße 58, D-10117 Berlin
    Phone: xx49-30-89789-671
    Fax: xx49-30-89789-109
    Web page: http://www.diw.de/en/soep
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Constant, Amelie F. & Otterbach, Steffen, 2011. "Work Hours Constraints: Impacts and Policy Implications," IZA Policy Papers 35, Institute for the Study of Labor (IZA).
    2. Orley C. Ashenfelter & Henry Farber & Michael R Ransom, 2010. "Labor Market Monopsony," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 203-210, 04.
    3. George J. Borjas, 1980. "The Relationship between Wages and Weekly Hours of Work: The Role of Division Bias," Journal of Human Resources, University of Wisconsin Press, vol. 15(3), pages 409-423.
    4. Alan Manning, 2003. "The Real Thin Theory: Monopsony in Modern Labour Markets," CEP Discussion Papers dp0564, Centre for Economic Performance, LSE.
    5. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers 7136, National Bureau of Economic Research, Inc.
    6. Daniel Fernández-Kranz & Núria Rodríguez-Planas, 2010. "The Part-Time Pay Penalty in a Segmented Labor Market," Working Papers 458, Barcelona Graduate School of Economics.
    7. Moffitt, Robert, 1984. "The Estimation of a Joint Wage-Hours Labor Supply Model," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 550-66, October.
    8. Alan Manning & Helen Robinson, 1998. "Something in the way She Movcs: A Fresh Look at an Old Gap," CEP Discussion Papers dp0389, Centre for Economic Performance, LSE.
    9. Elena Bardasi & Janet Gornick, 2008. "Working for less? Women's part-time wage penalties across countries," Feminist Economics, Taylor & Francis Journals, vol. 14(1), pages 37-72.
    10. Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70, pages 538.
    11. Mark Wooden & Diana Warren & Robert Drago, 2009. "Working Time Mismatch and Subjective Well-being," British Journal of Industrial Relations, London School of Economics, vol. 47(1), pages 147-179, 03.
    12. David BELL & Steffen OTTERBACH & Alfonso SOUSA-POZA, 2012. "Working Hours Constraints and Health," Annales d'Economie et de Statistique, ENSAE, issue 105-106, pages 3.
    13. Lindbeck, Assar & Snower, Dennis J., 1999. "Multi-Task Learning and the Reorganization of Work. From Tayloristic to Holistic Organization," IZA Discussion Papers 39, Institute for the Study of Labor (IZA).
    14. Bell, David N.F. & Otterbach, Steffen & Sousa-Poza, Alfonso, 2011. "Work Hours Constraints and Health," IZA Discussion Papers 6126, Institute for the Study of Labor (IZA).
    15. Martijn P. Tummers & Isolde Woittiez, 1991. "A Simultaneous Wage and Labor Supply Model with Hours Restrictions," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 393-423.
    16. Gerd Grözinger & Wenzel Matiaske & Verena Tobsch, 2008. "Arbeitszeitwünsche, Arbeitslosigkeit und Arbeitszeitpolitik," SOEPpapers on Multidisciplinary Panel Data Research 103, DIW Berlin, The German Socio-Economic Panel (SOEP).
    17. Piet Allaart & Lutz Bellmann, 2007. "Reasons for part-time work: an empirical analysis for Germany and The Netherlands," International Journal of Manpower, Emerald Group Publishing, vol. 28(7), pages 557-570, November.
    18. Rob Euwals & Maurice Hogerbrugge, 2006. "Explaining the Growth of Part-time Employment: Factors of Supply and Demand," LABOUR, CEIS, vol. 20(3), pages 533-557, 09.
    19. Eleonora Matteazzi & Ariane Pailhé & Anne Solaz, 2012. "Part-time wage penalties in Europe: A matter of selection or segregation?," Working Papers 250, ECINEQ, Society for the Study of Economic Inequality.
    20. Caroli, Eve & Van Reenen, John, 1999. "Skill biased organizational change? Evidence from a panel of British and French establishments," CEPREMAP Working Papers (Couverture Orange) 9917, CEPREMAP.
    21. Inés Hardoy & P�l Schøne, 2006. "The Part-Time Wage Gap in Norway: How Large is It "Really"?," British Journal of Industrial Relations, London School of Economics, vol. 44(2), pages 263-282, 06.
    22. Joan R. Rodgers, 2004. "Hourly Wages of full-time and part-time employees in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(2), pages 231-254, June.
    23. Bianca Buligescu & Denis de Crombrugghe & Gülçin Menteşoğlu & Raymond Montizaan, 2009. "Panel estimates of the wage penalty for maternal leave," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages i35-i55, April.
    24. Daniel Aaronson & Eric French, 2004. "The Effect of Part-Time Work on Wages: Evidence from the Social Security Rules," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 329-352, April.
    25. Alan Manning & Ted To, 2002. "Oligopsony and Monopsonistic Competition in Labor Markets," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 155-174, Spring.
    26. Bell, Linda A. & Freeman, Richard B., 2001. "The incentive for working hard: explaining hours worked differences in the US and Germany," Labour Economics, Elsevier, vol. 8(2), pages 181-202, May.
    27. Wahlberg, Roger, 2008. "The Part-Time Penalty for Natives and Immigrants," Working Papers in Economics 314, University of Gothenburg, Department of Economics.
    28. Regina T. Riphahn & Parvati Trübswetter, 2007. "Population Aging and Trends in the Provision of Continued Education," Research Notes of the German Council for Social and Economic Data 11, German Council for Social and Economic Data (RatSWD).
    29. 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.
    30. Barry T. Hirsch, 2005. "Why do part-time workers earn less? The role of worker and job skills," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 58(4), pages 525-551, July.
    31. Landers, Renee M & Rebitzer, James B & Taylor, Lowell J, 1996. "Rat Race Redux: Adverse Selection in the Determination of Work Hours in Law Firms," American Economic Review, American Economic Association, vol. 86(3), pages 329-48, June.
    32. Montgomery, Mark, 1988. "On the Determinants of Employer Demand for Part-Time Workers," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 112-17, February.
    33. Euwals, Rob & Hogerbrugge, Maurice, 2006. "Explaining the Growth of Part-Time Employment: Factors of Supply and Demand," CEPR Discussion Papers 5595, C.E.P.R. Discussion Papers.
    34. Karl Brenke, 2011. "Anhaltender Strukturwandel zur Teilzeitbeschäftigung," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 78(42), pages 2-12.
    35. Wahlberg, Roger, 2008. "Part-Time Penalty in Sweden: Evidence from Quantile Regression," Working Papers in Economics 315, University of Gothenburg, Department of Economics.
    36. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September.
    37. Giovanni Russo & Wolter Hassink, 2008. "The Part-Time Wage Gap: a Career Perspective," De Economist, Springer, vol. 156(2), pages 145-174, June.
    38. Barzel, Yoram, 1973. "The Determination of Daily Hours and Wages," The Quarterly Journal of Economics, MIT Press, vol. 87(2), pages 220-38, May.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:diw:diwsop:diw_sp663. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.