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Back-to-front Down-under? Part-time/Full-time Wage Differentials in Australia

  • Booth, Alison L.

    ()

    (Australian National University)

  • Wood, Margi

    ()

    (Australian National University)

In 2003, part-time employment in Australia accounted for over 42% of the Australian female workforce, nearly 17% of the male workforce, and represented 28% of total employment. Of the OECD countries, only the Netherlands has a higher proportion of working women employed part-time and Australia tops the OECD league in terms of its proportion of working men who are part-time. In this paper we investigate part-time full-time hourly wage gaps using important new panel data from the first four waves of the new Household, Income and Labour Dynamics in Australia Survey. We find that, once unobserved individual heterogeneity has been taken into account, part-time men and women typically earn an hourly pay premium. This premium varies with casual employment status, but is always positive, a result that survives our robustness checks. We advance some hypotheses as to why there is a part-time pay advantage in Australia.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2268.

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Length: 33 pages
Date of creation: Aug 2006
Date of revision:
Publication status: published in: Industrial Relations, 2008, 47 (1), 114-135
Handle: RePEc:iza:izadps:dp2268
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  1. Alison L. Booth & Jan C. Van Ours, 2009. "Hours of Work and Gender Identity: Does Part-time Work Make the Family Happier?," Economica, London School of Economics and Political Science, vol. 76(301), pages 176-196, 02.
  2. Booth, Alison & Ravallion, Martin, 1993. "Employment and Length of the Working Week in a Unionized Economy in which Hours of Work Influence Productivity," The Economic Record, The Economic Society of Australia, vol. 69(207), pages 428-36, December.
  3. Mark Wooden & Diana Warren, 2003. "The Characteristics of Casual and Fixed-Term Employment: Evidence from the HILDA Survey," Melbourne Institute Working Paper Series wp2003n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  4. Wayne Simpson, 1986. "Analysis of Part-Time Pay in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 19(4), pages 798-807, November.
  5. Barry T. Hirsch, 2005. "Why Do Part-Time Workers Earn Less? The Role of Worker and Job Skills," ILR Review, Cornell University, ILR School, vol. 58(4), pages 525-551, July.
  6. John F. Ermisch & Robert E. Wright, 1993. "Wage Offers and Full-Time and Part-Time Employment by British Women," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 111-133.
  7. Main, Brian G M, 1988. "Hourly Earnings of Female Part-time versus Full-time Employees," The Manchester School of Economic & Social Studies, University of Manchester, vol. 56(4), pages 331-44, December.
  8. 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.
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