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Part-time wage penalties in Europe: A matter of selection or segregation?

Author

Listed:
  • Eleonora Matteazzi

    () (INED and University of Paris Ouest Nanterre La Défense)

  • Ariane Pailhé

    (INED)

  • Anne Solaz

    (INED)

Abstract

Different profiles of female participation and part-time employment can be observed within Europe. The aim of this paper is to estimate whether there still exists a wage penalty for part-time workers in four European countries (i.e. Austria, Italy, Poland, and the United Kingdom) after the introduction of Council Directive 97/81/EC concerning the Framework Agreement on part-time work and aiming at eliminate any form of discrimination against part-time workers. Full-time hourly wages exceed part-time hourly wages in all countries. Several explanations can be found in literature: different characteristics of part-time and full-time workers in terms of human capital accumulation, preferences, level of union membership, etc. Also the presence of discrimination against part-time workers within firms can explain this positive wage gap. However the magnitude of these explanations may differ between countries. Using the EU-SILC for the year 2009, we study the full-time/part-time pay differential focusing on the contribution of segregation and selection in explaining the observed positive wage gap. Results show that segregation matters in explaining the full-time/part-time wage gap. We find also evidence of a significant part-time wage premium in Austria and Poland once we control for sample selection.

Suggested Citation

  • 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.
  • Handle: RePEc:inq:inqwps:ecineq2012-250
    as

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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-250.pdf
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    References listed on IDEAS

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    1. 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 112-117, February.
    2. Buddelmeyer, Hielke & Mourre, Gilles & Ward-Warmedinger, Melanie E., 2004. "Recent Developments in Part-Time Work in EU-15 Countries: Trends and Policy," IZA Discussion Papers 1415, Institute for the Study of Labor (IZA).
    3. Fernández-Kranz, Daniel & Rodríguez-Planas, Núria, 2011. "The part-time pay penalty in a segmented labor market," Labour Economics, Elsevier, vol. 18(5), pages 591-606, October.
    4. Alan Manning & Barbara Petrongolo, 2008. "The Part-Time Pay Penalty for Women in Britain," Economic Journal, Royal Economic Society, vol. 118(526), pages 28-51, February.
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    6. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
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    8. Inés Hardoy & Pål 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, June.
    9. Maria Jepsen & Sile Padraigin O'Dorchai & Robert Plasman & François Rycx, 2005. "The wage penalty induced by part-time work: the case of Belgium," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 48(1-2), pages 73-94.
    10. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
    11. Ronald L Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
    12. Lung-Fei Lee, 1982. "Some Approaches to the Correction of Selectivity Bias," Review of Economic Studies, Oxford University Press, vol. 49(3), pages 355-372.
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    Citations

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    Cited by:

    1. Eleonora Matteazzi & Ariane Pailhé & Anne Solaz, 2013. "Does Part-Time Employment Widen the Gender Wage Gap? Evidence from Twelve European Countries," Working Papers 293, ECINEQ, Society for the Study of Economic Inequality.
    2. Elke Wolf, 2014. "The German Part-Time Wage Gap: Bad News for Men," SOEPpapers on Multidisciplinary Panel Data Research 663, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Alyssa Schneebaum & Miriam Rehm & Katharina Mader & Patricia Klopf & Katarina Hollan, 2014. "The Gender Wealth Gap in Europe," Department of Economics Working Papers wuwp186, Vienna University of Economics and Business, Department of Economics.
    4. Colella, Fabrizio, 2014. "Women's Part-Time - Full-Time Wage Differentials in Europe: an Endogenous Switching Model," MPRA Paper 55287, University Library of Munich, Germany.
    5. Jeroen Horemans, 2016. "The part-time poverty gap across Europe: How institutions affect the way part-time and full-time workers avoid poverty differently," Working Papers 1603, Herman Deleeck Centre for Social Policy, University of Antwerp.
    6. 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.
    7. Blau, Francine D. & Kahn, Lawrence M., 2013. "Female Labor Supply: Why is the US Falling Behind?," IZA Discussion Papers 7140, Institute for the Study of Labor (IZA).
    8. Wolf, Elke, 2013. "The German part-time wage gap: bad news for men," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79969, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    work status; part-time employment; wage gap; decomposition; iscrimination. Classification-JEL: C31; J21; J22; J24; J31; J71.;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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