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Part-time hours and wages

Author

Listed:
  • Ana I. Moro Egido

    (Department of Economic Theory and Economic History, University of Granada.)

  • Joaquin Naval

    (Universidad de Girona.)

  • Jose I. Silva

    (Universidad de Girona.)

Abstract

This paper studies the non-linear relationship between part-time hours and wages in 10 European Union countries. We use the harmonized 2018 Structure of Earnings Survey, that provides comparable microdata on the link between the level of earnings and paid hours. We empirically assess the relevance of the relationship correcting for self-selection and endogeneity. We show the presence of two effects going in opposite directions. First, a part-time wage premium due to the presence of decreasing returns in the production function. Second, a wage penalty due to the presence of coordination costs that arises when a part-time worker deviates from the usual hours worked in the firm. We also show that the unexplained part-time wage penalty is considerably affected by the hours-wage relationship.

Suggested Citation

  • Ana I. Moro Egido & Joaquin Naval & Jose I. Silva, 2023. "Part-time hours and wages," ThE Papers 23/06, Department of Economic Theory and Economic History of the University of Granada..
    • Handle: RePEc:gra:wpaper:23/06
    as

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    File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers23_06.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Hours-wage relationship; full-time equivalent; coordination costs; fixed labor costs.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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