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The Part-Time Penalty

Author

Listed:
  • Frederiksen, Anders

    (Aarhus University)

  • Junker-Jensen, Louis

    (Aarhus University)

Abstract

We study the part-time penalty. Using Danish register data, the Danish Labor Force Survey, and hospital personnel records, we show that the pay gap between part-time and full-time workers is sizable and increases over the career because the two groups accumulate different levels of human capital over time. Our best estimates of the part-time penalty are for nurses. The penalty is 14 percent at the beginning of the career and increases by 0.5 percent each year. This pay gap is closely related to the development of nurses' competence level, highlighting the persistent effects that part-time work has on lifetime earnings.

Suggested Citation

  • Frederiksen, Anders & Junker-Jensen, Louis, 2026. "The Part-Time Penalty," IZA Discussion Papers 18401, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18401
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    Keywords

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    JEL classification:

    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • 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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