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The part-time pay penalty

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  • Manning, Alan
  • Petrongolo, Barbara

Abstract

In 2003, women working part-time in the UK earned, on average, 22% less than women working full-time. Compared to women who work FT, PT women are more likely to have low levels of education, to be in a couple, to have young and numerous children, to work in small establishments in distribution, hotels and restaurants and in low-level occupations. Taking account of these differences, the PT penalty for identical women doing the same job is estimated to be about 10% if one does not take account of differences in the occupations of FT and PT women and 3% if one does. The occupational segregation of PT and FT women can explain most of the aggregate PT pay penalty. In particular, women who move from FT to PT work are much more likely to change employer and/or occupation than those who maintain their hours status. And, when making this transition, they tend to make a downward occupational move, evidence that many women working PT are not making full use of their skills and experience. Women working PT in the other EU countries have similar problems to the UK but the UK has the highest PT pay penalty and one of the worst problems in enabling women to move between FT and PT work without occupational demotions. At the same time, PT work in the UK carries a higher job satisfaction premium (or a lower job satisfaction penalty) than in most other countries. Policy initiatives in recent years like the National Minimum Wage, the Part-Time Workers Regulations and the Right to Request Flexible Working appear to have had little impact on the PT pay penalty as yet although it is too early to make a definitive assessment of the full impact of some of these regulations. The most effective way to reduce the PT pay penalty would be to strengthen rights for women to move between FT and PT work without losing their current job.

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  • Manning, Alan & Petrongolo, Barbara, 2005. "The part-time pay penalty," LSE Research Online Documents on Economics 3661, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:3661
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    Cited by:

    1. Sara Connolly & Mary Gregory, 2008. "Moving Down: Women's Part‐Time Work and Occupational Change in Britain 1991–2001," Economic Journal, Royal Economic Society, vol. 118(526), pages 52-76, February.
    2. Pacifico, Daniele, 2009. "A behavioral microsimulation model with discrete labour supply for Italian couples," MPRA Paper 14198, University Library of Munich, Germany.
    3. Síle O'Dorchai & Robert Plasman & François Rycx, 2007. "The part-time wage penalty in European countries: how large is it for men?," International Journal of Manpower, Emerald Group Publishing, vol. 28(7), pages 571-603, October.
    4. Thierry Lallemand & Robert Plasman & François Rycx, 2007. "The establishment-size wage premium: evidence from European countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(5), pages 427-451, December.
    5. Sile Padraigin O'Dorchai, 2008. "Do women gain or lose from becoming mothers?," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 51(2/3), pages 243-268.
    6. Maria Evandrou & Jane Falkingham & Tom Sefton, 2008. "Family ties: Women’s work and family histories and their association with incomes in later life in the UK," CASE Papers case135, Centre for Analysis of Social Exclusion, LSE.
    7. Wendy Sigle, 2008. "England and Wales: Stable fertility and pronounced social status differences," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 19(15), pages 455-502.
    8. Victoria Prowse, 2012. "Modeling Employment Dynamics With State Dependence and Unobserved Heterogeneity," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(3), pages 411-431, April.
    9. Brehmer, Wolfram & Seifert, Hartmut, 2008. "Sind atypische Beschäftigungsverhältnisse prekär? : eine empirische Analyse sozialer Risiken (Are atypical employment relationships precarious? : an empirical analysis of social risks)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(4), pages 501-531.
    10. Andreas Hornstein & Per Krusell & Giovanni L. Violante, 2011. "Frictional Wage Dispersion in Search Models: A Quantitative Assessment," American Economic Review, American Economic Association, vol. 101(7), pages 2873-2898, December.
    11. Mumford, Karen A. & Smith, Peter N., 2007. "Assessing the Importance of Male and Female Part-Time Work for the Gender Earnings Gap in Britain," IZA Discussion Papers 2981, Institute of Labor Economics (IZA).
    12. Bachmann, Ronald & Bauer, Thomas K. & Kröger, Hanna & Schaffner, Sandra & Schmidt, Christoph M., 2012. "Tarifsystem stabilisieren: Drucksache 17/8148. Stellungnahme zur Anhörung des Ausschusses für Arbeit und Soziales des Deutschen Bundestages am 6. Februar 2012," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72592, October.
    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. Bukowski, Maciej & Lewandowski, Piotr & Koloch, Grzegorz & Baranowska, Anna & Magda, Iga & Szydlowski, Arkadiusz & Bober, Magda & Bieliński, Jacek & Zawistowski, Julian & Sarzalska, Malgorzata, 2008. "Employment in Poland 2007: Security on flexible labour market," MPRA Paper 14284, University Library of Munich, Germany.
    15. Brehmer, Wolfram & Seifert, Hartmut, 2008. "Sind atypische Beschäftigungsverhältnisse prekär? : eine empirische Analyse sozialer Risiken (Are atypical employment relationships precarious? : an empirical analysis of social risks)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(4), pages 501-531.
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    17. Janet Gornick & Elena Bardasi, 2007. "Women's Part-Time Wage Penalties Across Countries," LIS Working papers 467, LIS Cross-National Data Center in Luxembourg.
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    19. Hornstein, Andreas & Krusell, Per & Violante, Giovanni L, 2006. "Frictional Wage Dispersion in Search Models: A Quantitative Approach," CEPR Discussion Papers 5935, C.E.P.R. Discussion Papers.
    20. Wolf, Elke, 2010. "Lohndifferenziale zwischen Vollzeit- und Teilzeitbeschäftigten in Ost- und Westdeutschland," WSI Working Papers 174, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
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    More about this item

    Keywords

    employment transitions; part-time work; motherhood; EU; equality;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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