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Is Part-Time Employment Beneficial for Firm Productivity?


  • Künn-Nelen, Annemarie

    () (ROA, Maastricht University)

  • de Grip, Andries

    () (ROA, Maastricht University)

  • Fouarge, Didier

    () (ROA, Maastricht University)


This paper analyzes whether part-time employment is beneficial for firm productivity in the service sector. Using a unique dataset on the Dutch pharmacy sector that includes the work hours of all employees and a “hard” physical measure of firm productivity, we estimate a production function including heterogeneous employment shares based on work hours. We find that a larger part-time employment share leads to greater firm productivity. Additional data on the timing of labor demand show that part-time employment enables firms to allocate labor more efficiently. First, firms with part-time workers can bridge the gap between opening hours and a full-time work week. Second, we find that during opening hours part-time workers are scheduled differently than full-timers. For example, we find that part-time workers enable their full-time colleagues to take lunch breaks so that the firm can remain open during these times.

Suggested Citation

  • Künn-Nelen, Annemarie & de Grip, Andries & Fouarge, Didier, 2011. "Is Part-Time Employment Beneficial for Firm Productivity?," IZA Discussion Papers 5423, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5423

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    References listed on IDEAS

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    Blog mentions

    As found by, the blog aggregator for Economics research:
    1. Does part-time employment increase firm productivity?
      by Economic Logician in Economic Logic on 2011-02-22 21:05:00


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    Cited by:

    1. Collewet, Marion & Sauermann, Jan, 2017. "Working hours and productivity," Labour Economics, Elsevier, vol. 47(C), pages 96-106.
    2. Rupietta, Kira, 2015. "How does Part-time Work Affect Firm Performance and Innovation Activity?," Working papers 2015/05, Faculty of Business and Economics - University of Basel.
    3. Andrea Garnero, 2016. "Are part-time workers less productive and underpaid?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 249-249, April.
    4. Andrea Garnero & Stephan Kampelmann & François Rycx, 2013. "Part-time Work, Wages and Productivity:Evidence from Belgian Matched Panel Data," DULBEA Working Papers 13-08, ULB -- Universite Libre de Bruxelles.
    5. Andreas Koch & Jochen Späth & Harald Strotmann, 2013. "The role of employees for post-entry firm growth," Small Business Economics, Springer, vol. 41(3), pages 733-755, October.
    6. Devicienti, Francesco & Grinza, Elena & Vannoni, Davide, 2015. "The Impact of Part-Time Work on Firm Total Factor Productivity: Evidence from Italy," IZA Discussion Papers 9463, Institute for the Study of Labor (IZA).
    7. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    8. Bart Loog & Thomas Dohmen & Maarten Vendrik, 2013. "The Scope for Increasing Total Hours Worked," De Economist, Springer, vol. 161(2), pages 157-174, June.

    More about this item


    timing of labor demand; heterogeneous labor; matched employer-employee data; allocation of labor;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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