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Part-Time Work, Fixed-Term Contracts, and the Returns to Experience

Author

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  • Fernández-Kranz, Daniel

    () (IE Business School, Madrid)

  • Paul, Marie

    () (University of Duisburg-Essen)

  • Rodríguez-Planas, Núria

    () (Queens College, CUNY)

Abstract

Using data from Spanish Social Security records, we investigate the returns to experience in different flexible work arrangements, including part-time and full-time work, and permanent and fixed-term contracts. We use a trivariate random effects model which consists of a three-equation system that is estimated simultaneously by Markov Chain Monte Carlo techniques. Our results indicate that there is a large pay gap for working part-time which persists many years after having resumed full-time work. We also find that working part-time involves lower returns to experience than standard full-time employment and thus a substantial negative wage differential for those employed part-time accumulates over time. Finally, we find that heterogeneity exist by contract type and motherhood status.

Suggested Citation

  • Fernández-Kranz, Daniel & Paul, Marie & Rodríguez-Planas, Núria, 2011. "Part-Time Work, Fixed-Term Contracts, and the Returns to Experience," IZA Discussion Papers 5815, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5815
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    References listed on IDEAS

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    1. Guillaume Horny & Rute Mendes & Gerard J. van den Berg, 2012. "Job Durations With Worker- and Firm-Specific Effects: MCMC Estimation With Longitudinal Employer--Employee Data," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(3), pages 468-480, March.
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    Citations

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    Cited by:

    1. Raúl Ramos & Esteban Sanromá & Hipólito Simón, 2015. "An analysis of wage differentials between full-and part-time workers in Spain," Working Papers 2015/29, Institut d'Economia de Barcelona (IEB).
    2. J. Ignacio García-Pérez & Ioana Marinescu & Judit Vall Castello, 2014. "Can Fixed-Term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain," Working Papers 2014-08, FEDEA.
    3. Paul, Marie & Fernandez-Kranz, Daniel & Rodriguez-Planas, Nuria, 2014. "The Wage Effects of Fixed-term Contract Employment Revisited: an Investigation Based on Social Security Records," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100324, Verein für Socialpolitik / German Economic Association.
    4. repec:ilo:ilowps:483968 is not listed on IDEAS
    5. Fagan, Colette. & Norman, Helen. & Smith, Mark. & Gonzalez Menendez, María C., 2014. "In search of good quality part-time employment," ILO Working Papers 994839683402676, International Labour Organization.

    More about this item

    Keywords

    random effects models; MCMC; fixed-term and permanent contracts; part-time employment; returns to experience of differential work histories; motherhood;

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • 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
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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