IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp9738.html
   My bibliography  Save this paper

Cyclical and Market Determinants of Involuntary Part-Time Employment

Author

Listed:
  • Valletta, Robert G.

    (Federal Reserve Bank of San Francisco)

  • Bengali, Leila

    (Yale University)

  • van der List, Catherine

    (University of Essex)

Abstract

We examine the determinants of involuntary part-time employment, focusing on variation associated with the business cycle and variation attributable to more persistent structural features of the labor market. Our theoretical framework distinguishes between workers' decision to seek part-time work and employer demand for part-time work hours, emphasizing demand and supply determinants of involuntary part-time work such as workplace technology, labor costs, and workforce demographics. We conduct regression analyses using state-level panel and individual data for the years 2003-2014. The results show that the combination of cyclical variation and the influence of market-level factors can explain virtually all of the variation in the aggregate incidence of involuntary part-time employment since the Great Recession.

Suggested Citation

  • Valletta, Robert G. & Bengali, Leila & van der List, Catherine, 2016. "Cyclical and Market Determinants of Involuntary Part-Time Employment," IZA Discussion Papers 9738, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9738
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp9738.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    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. Sarah Dolfin, 2006. "An examination of firms' employment costs," Applied Economics, Taylor & Francis Journals, vol. 38(8), pages 861-878.
    3. Leila Bengali & Robert G. Valletta, 2013. "What’s behind the increase in part-time work?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue aug26.
    4. Scott R. Baker & Nicholas Bloom & Steven J. Davis, 2016. "Measuring Economic Policy Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1593-1636.
    5. repec:hal:wpspec:info:hdl:2441/4itbiqg0h38538a71odou3jmkm is not listed on IDEAS
    6. William E. Even & David A. Macpherson, 2019. "The Affordable Care Act and the Growth of Involuntary Part-Time Employment," ILR Review, Cornell University, ILR School, vol. 72(4), pages 955-980, August.
    7. 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.
    8. Thomas C. Buchmueller & John DiNardo & Robert G. Valletta, 2011. "The Effect of an Employer Health Insurance Mandate on Health Insurance Coverage and the Demand for Labor: Evidence from Hawaii," American Economic Journal: Economic Policy, American Economic Association, vol. 3(4), pages 25-51, November.
    9. Sarah Dolfin, "undated". "An Examination of Firms' Employment Costs," Mathematica Policy Research Reports 780d91c4f4c44661a7654d955, Mathematica Policy Research.
    10. Karen Leppel & Suzanne Heller Clain, 1993. "Determinants of Voluntary and Involuntary Part-Time Employment," Eastern Economic Journal, Eastern Economic Association, vol. 19(1), pages 59-70, Winter.
    11. repec:mpr:mprres:5053 is not listed on IDEAS
    12. Rob Euwals & Maurice Hogerbrugge, 2006. "Explaining the Growth of Part‐time Employment: Factors of Supply and Demand," LABOUR, CEIS, vol. 20(3), pages 533-557, September.
    13. repec:hal:spmain:info:hdl:2441/4itbiqg0h38538a71odou3jmkm is not listed on IDEAS
    14. John Pencavel, 2016. "Whose Preferences Are Revealed In Hours Of Work?," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 9-24, January.
    15. Maria E. Canon & Marianna Kudlyak & Guannan Luo & Marisa Reed, 2014. "Flows To and From Working Part Time for Economic Reasons and the Labor Market Aggregates During and After the 2007-09 Recession," Economic Quarterly, Federal Reserve Bank of Richmond, issue 2Q, pages 87-111.
    16. Joanna Abhayaratna & Les Andrews & Hudan Nuch & Troy Podbury, 2008. "Part Time Employment: the Australian Experience," Staff Working Papers 0805, Productivity Commission, Government of Australia.
    17. Yongsung Chang & Sun-Bin Kim & Kyooho Kwon & Richard Rogerson, 2011. "Interpreting Labor Supply Regressions in a Model of Full- and Part-Time Work," American Economic Review, American Economic Association, vol. 101(3), pages 476-481, May.
    18. John Baffoe-Bonnie, 2004. "Interindustry part-time and full-time wage differentials: regional and national analysis," Applied Economics, Taylor & Francis Journals, vol. 36(2), pages 107-118.
    19. Robert G. Valletta & Catherine van der List, 2015. "Involuntary part-time work: here to stay?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    20. Euwals, Rob & ,, 2006. "Explaining the Growth of Part-Time Employment: Factors of Supply and Demand," CEPR Discussion Papers 5595, C.E.P.R. Discussion Papers.
    21. Tomaz Cajner & Dennis Mawhirter & Christopher J. Nekarda & David Ratner, 2014. "Why is Involuntary Part-Time Work Elevated?," FEDS Notes 2014-04-14, Board of Governors of the Federal Reserve System (U.S.).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:spo:wpecon:info:hdl:2441/4f4eu80n0h8r28g6dadlk02mtb is not listed on IDEAS
    2. Annemarie Künn-Nelen & Andries de Grip & Didier Fouarge, 2013. "Is Part-Time Employment Beneficial for Firm Productivity?," ILR Review, Cornell University, ILR School, vol. 66(5), pages 1172-1191, October.
    3. Daniel Borowczyk-Martins & Etienne Lalé, 2016. "The Rise of Part-time Employment," SciencePo Working papers hal-01311976, HAL.
    4. Daniel Borowczyk-Martins & Etienne Lalé, 2018. "The welfare effects of involuntary part-time work," Oxford Economic Papers, Oxford University Press, vol. 70(1), pages 183-205.
    5. repec:hal:wpspec:info:hdl:2441/4f4eu80n0h8r28g6dadlk02mtb is not listed on IDEAS
    6. repec:spo:wpmain:info:hdl:2441/7arg7blugi9b2o08qjafcpg8e2 is not listed on IDEAS
    7. repec:hal:spmain:info:hdl:2441/4f4eu80n0h8r28g6dadlk02mtb is not listed on IDEAS
    8. 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).
    9. repec:spo:wpmain:info:hdl:2441/4f4eu80n0h8r28g6dadlk02mtb is not listed on IDEAS
    10. repec:hal:wpspec:info:hdl:2441/7arg7blugi9b2o08qjafcpg8e2 is not listed on IDEAS
    11. repec:hal:spmain:info:hdl:2441/7arg7blugi9b2o08qjafcpg8e2 is not listed on IDEAS
    12. Wolf, Elke, 2013. "The German part-time wage gap: bad news for men," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79969, Verein für Socialpolitik / German Economic Association.
    13. repec:spo:wpecon:info:hdl:2441/7arg7blugi9b2o08qjafcpg8e2 is not listed on IDEAS
    14. Ramos, Raul & Sanromá, Esteban & Simón, Hipólito, 2015. "An Analysis of Wage Differentials between Full- and Part-Time Workers in Spain," IZA Discussion Papers 9257, Institute of Labor Economics (IZA).
    15. Raul Ramos & Esteban Sanromá & Hipólito Simón, 2016. "The part-time wage penalty: Does bargaining coverage outweigh regional differences in Spain?," The Economic and Labour Relations Review, , vol. 27(3), pages 368-386, September.
    16. Congregado, Emilio & Garcia-Clemente, Javier & Rubino, Nicola & Vilchez, Inmaculada, 2023. "Testing hysteresis for the US and UK involuntary part-time employment," MPRA Paper 118115, University Library of Munich, Germany.
    17. Kang, Hyunju & Park, Jaevin & Suh, Hyunduk, 2020. "The rise of part-time employment in the great recession: Its causes and macroeconomic effects," Journal of Macroeconomics, Elsevier, vol. 66(C).
    18. William E. Even & David A. Macpherson, 2019. "The Affordable Care Act and the Growth of Involuntary Part-Time Employment," ILR Review, Cornell University, ILR School, vol. 72(4), pages 955-980, August.
    19. Borowczyk-Martins, Daniel & Lalé, Etienne, 2020. "The ins and outs of involuntary part-time employment," Labour Economics, Elsevier, vol. 67(C).
    20. Daniel Borowczyk-Martins & Etienne Lalé, 2019. "Employment Adjustment and Part-Time Work: Lessons from the United States and the United Kingdom," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(1), pages 389-435, January.
    21. Marcus Dillender & Carolyn J. Heinrich & Susan Houseman, 2022. "Effects of the Affordable Care Act on Part-Time Employment: Early Evidence," Journal of Human Resources, University of Wisconsin Press, vol. 57(4), pages 1394-1423.
    22. 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 of Labor Economics (IZA).
    23. Bart Loog & Thomas Dohmen & Maarten Vendrik, 2013. "The Scope for Increasing Total Hours Worked," De Economist, Springer, vol. 161(2), pages 157-174, June.
    24. Daniel Borowczyk-Martins, 2017. "Why does part-time employment increase in recessions?," IZA World of Labor, Institute of Labor Economics (IZA), pages 397-397, October.
    25. Attanasio, Orazio & Low, Hamish & Sánchez-Marcos, Virginia & Levell, Peter, 2015. "Aggregating Elasticities: Intensive and Extensive Margins of Female Labour Supply," CEPR Discussion Papers 10732, C.E.P.R. Discussion Papers.
    26. Lennon, Conor, 2021. "Are the costs of employer-sponsored health insurance passed on to workers at the individual level?," Economics & Human Biology, Elsevier, vol. 41(C).
    27. Klinger, Sabine & Wolf, Katja, 2008. "What explains changes in full-time and part-time employment in Western Germany? : a new method on an old question," IAB-Discussion Paper 200807, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    28. Tom Günther & Ulrich C. Schneider & Fabian Stürmer-Heiber, 2023. "Working More for Less: Part-time Penalties Across the Working Hours Distribution?," Berlin School of Economics Discussion Papers 0025, Berlin School of Economics.

    More about this item

    Keywords

    business cycle; part-time employment; supply and demand;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp9738. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.