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Employment Adjustment and Part-time Jobs: The U.S. and the U.K. in the Great Recession

Listed author(s):
  • Borowczyk-Martins, Daniel

    ()

    (Copenhagen Business School)

  • Lalé, Etienne

    ()

    (University of Québec at Montréal)

We document that fluctuations in part-time employment play a major role in movements in hours per worker, especially during cyclical swings in the labor market. Building on this result, we propose a novel representation of the intensive margin based on a stock-flow framework. The evolution of part-time employment is predominantly explained by cyclical changes in transitions between full-time and part-time employment, which occur overwhelmingly at the same employer and entail large changes in individuals' working hours. We discuss implications for a large class of macroeconomic models that map individual decisions along the extensive/intensive margins onto aggregate labor market outcomes.

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File URL: http://ftp.iza.org/dp9847.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 9847.

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Length: 48 pages
Date of creation: Mar 2016
Handle: RePEc:iza:izadps:dp9847
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