IDEAS home Printed from https://ideas.repec.org/p/ulb/ulbeco/2013-8555.html
   My bibliography  Save this paper

The part-time wage penalty in European countries: how large is it for men?

Author

Listed:
  • Sile Padraigin O'Dorchai
  • Robert Plasman
  • François Rycx

Abstract

Purpose - This paper aims to measure and analyse the wage gap between male part- and full-timers in the private sector of six European countries, i.e. Belgium, Denmark, Ireland, Italy, Spain, and the UK. Design/methodology/approach - Using a unique matched employer-employee data set providing harmonised information on six European countries (the 1995 European Structure of Earnings Survey), the empirical strategy is based on the estimation of standard Mincer wage equations and the Oaxaca and Ransom wage gap decomposition technique. First, individual gross hourly wages are regressed on a set of human capital variables only and second, a wider range of control variables related to e.g. occupation, sector of activity, firm size, and level of wage bargaining is inserted. Findings - The study finds that the raw gap in hourly gross pay amounts to 16 per cent of a male part-timer's wage in Spain, to 24 per cent in Belgium, to 28 per cent in Denmark and Italy, to 67 per cent in the UK and to 149 per cent in Ireland. Human capital differences explain between 31 per cent of the observed wage gap in the UK and 71 per cent in Denmark. When the whole set of explanatory variables is included in the wage regressions, a much larger part of the gap is explained by differences in observed characteristics (except in Italy). Research limitation/implications - Unfortunately, the paper is not able to correct for workers' potential self-selection into part-time and full-time employment. Results suggest that policy initiatives to promote lifelong learning and training are of great importance to help part-timers catch up with full-timers in terms of human capital. Moreover, except for Italy, they point to a persisting problem of occupational and sectoral segregation between men working part-time and full-time which requires renewed policy attention. Originality/value - Economic theory advances a number of reasons for the existence of a wage gap between part-time and full-time workers. Empiri
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Sile Padraigin O'Dorchai & Robert Plasman & François Rycx, 2007. "The part-time wage penalty in European countries: how large is it for men?," ULB Institutional Repository 2013/8555, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:ulb:ulbeco:2013/8555
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Manski, Charles F., 1992. "Identification Problems In The Social Sciences," SSRI Workshop Series 292716, University of Wisconsin-Madison, Social Systems Research Institute.
    2. 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.
    3. Gomez, Sandalio & Pons, Celia & Marti, Carlos, 2002. "Part-Time work: Its evolution and results," IESE Research Papers D/476, IESE Business School.
    4. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    5. Alison Booth & Margi Wood, 2004. "Back-to-front Down-under? Part-time/Full-time Wage Differentials in Australia," CEPR Discussion Papers 482, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    6. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, January.
    7. G. Russo & W.H.J. Hassink, 2005. "The Part-Time Wage Penalty: a Career Perspective," Working Papers 05-01, Utrecht School of Economics.
    8. E. Paul Durrenberger, 2005. "Labour," Chapters, in: James G. Carrier (ed.), A Handbook of Economic Anthropology, chapter 8, Edward Elgar Publishing.
    9. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    10. Lindbeck, Assar & Snower, Dennis J, 2000. "Multitask Learning and the Reorganization of Work: From Tayloristic to Holistic Organization," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 353-376, July.
    11. Inés Hardoy & Pål Schøne, 2006. "The Part‐Time Wage Gap in Norway: How Large is It Really?," British Journal of Industrial Relations, London School of Economics, vol. 44(2), pages 263-282, June.
    12. Elena Bardasi, 2000. "Women and Part-Time Employment: Workers ""Choices"" and Wage Penalties in Five Industrialized Countries," LIS Working papers 223, LIS Cross-National Data Center in Luxembourg.
    13. Manning, Alan & Petrongolo, Barbara, 2005. "The part-time pay penalty," LSE Research Online Documents on Economics 4614, London School of Economics and Political Science, LSE Library.
    14. Martijn P. Tummers & Isolde Woittiez, 1991. "A Simultaneous Wage and Labor Supply Model with Hours Restrictions," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 393-423.
    15. Maria Jepsen & Sile Padraigin O'Dorchai & Robert Plasman & François Rycx, 2005. "The wage penalty induced by part-time work: the case of Belgium," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 48(1-2), pages 73-94.
    16. HU Yongjian & TIJDENS Kea, 2003. "Choices for part-time jobs and the impacts on the wage differentials. A comparative study for Great Britain and the Netherlands," IRISS Working Paper Series 2003-05, IRISS at CEPS/INSTEAD.
    17. Skatun, John Douglas, 1998. "Divide the hours and conquer the surplus: part-time workers and pay," Economics Letters, Elsevier, vol. 61(2), pages 235-242, November.
    18. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    19. Nicola‐Maria Riley, 1997. "Determinants of Union Membership: A Review," LABOUR, CEIS, vol. 11(2), pages 265-301, June.
    20. Erling Rasmussen & Jens Lind & Jelle Visser, 2004. "Divergence in Part‐Time Work in New Zealand, the Netherlands and Denmark," British Journal of Industrial Relations, London School of Economics, vol. 42(4), pages 637-658, December.
    21. Main, Brian G M & Reilly, Barry, 1992. "Women and the Union Wage Gap," Economic Journal, Royal Economic Society, vol. 102(410), pages 49-66, January.
    22. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    23. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    24. Stewart, Mark B, 1983. "Relative Earnings and Individual Union Membership in the United Kingdom," Economica, London School of Economics and Political Science, vol. 50(198), pages 111-125, May.
    25. Francis Vella & Marno Verbeek, 1998. "Whose wages do unions raise? A dynamic model of unionism and wage rate determination for young men," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(2), pages 163-183.
    26. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
    27. Bardasi, Elena & C. Gornick, Janet, 2000. "Women and part-time employment: workers’ ‘choices’ and wage penalties in five industrialized countries," ISER Working Paper Series 2000-11, Institute for Social and Economic Research.
    28. 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.
    29. Koskela, Erkki & Schob, Ronnie, 1999. "Does the composition of wage and payroll taxes matter under Nash bargaining?," Economics Letters, Elsevier, vol. 64(3), pages 343-349, September.
    30. Russo, Giovanni & Hassink, Wolter, 2005. "The Part-Time Wage Penalty: A Career Perspective," IZA Discussion Papers 1468, Institute of Labor Economics (IZA).
    31. Koskela, Erkki & Vilmunen, Jouko, 1996. "Tax progression is good for employment in popular models of trade union behaviour," Labour Economics, Elsevier, vol. 3(1), pages 65-80, August.
    32. Moffitt, Robert, 1984. "The Estimation of a Joint Wage-Hours Labor Supply Model," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 550-566, October.
    33. 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.
    34. 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.
    35. Yoram Barzel, 1973. "The Determination of Daily Hours and Wages," The Quarterly Journal of Economics, Oxford University Press, vol. 87(2), pages 220-238.
    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. Sile Padraigin O'Dorchai, 2008. "Do women gain or lose from becoming mothers?," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 51(2/3), pages 243-268.
    2. Colella, Fabrizio, 2014. "Women's Part-Time - Full-Time Wage Differentials in Europe: an Endogenous Switching Model," MPRA Paper 55287, University Library of Munich, Germany.
    3. Kerly Krillo & Jaan Masso, 2010. "The Part-Time/Full-Time Wage Gap in Central and Eastern Europe: the Case of Estonia," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 2(1).
    4. Eleonora Matteazzi & Ariane Pailhé & Anne Solaz, 2012. "Part-time wage penalties in Europe: A matter of selection or segregation?," Working Papers 250, ECINEQ, Society for the Study of Economic Inequality.
    5. Fernández-Kranz, Daniel & Rodríguez-Planas, Núria, 2011. "The part-time pay penalty in a segmented labor market," Labour Economics, Elsevier, vol. 18(5), pages 591-606, October.
    6. 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).
    7. 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.
    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. Alan Manning & Barbara Petrongolo, 2005. "The Part-Time Pay Penalty," CEP Discussion Papers dp0679, Centre for Economic Performance, LSE.
    10. Thierry Lallemand & Robert Plasman & François Rycx, 2007. "The establishment-size wage premium: evidence from European countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(5), pages 427-451, December.
    11. Wolf, Elke, 2010. "Lohndifferenziale zwischen Vollzeit- und Teilzeitbeschäftigten in Ost- und Westdeutschland," WSI Working Papers 174, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    12. Devicienti, Francesco & Grinza, Elena & Vannoni, Davide, 2020. "Why do firms (dis)like part-time contracts?," Labour Economics, Elsevier, vol. 65(C).
    13. Eleonora Matteazzi & Ariane Pailhé & Anne Solaz, 2013. "Does Part-Time Employment Widen the Gender Wage Gap? Evidence from Twelve European Countries," Working Papers 293, ECINEQ, Society for the Study of Economic Inequality.
    14. Andrea Garnero & Stephan Kampelmann & François Rycx, 2014. "Part-Time Work, Wages, and Productivity," ILR Review, Cornell University, ILR School, vol. 67(3), pages 926-954, July.
    15. Jelena Lausev, 2014. "WHAT HAS 20 YEARS OF PUBLIC–PRIVATE PAY GAP LITERATURE TOLD US? EASTERN EUROPEAN TRANSITIONING vs. DEVELOPED ECONOMIES," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 516-550, July.
    16. Männasoo, Kadri, 2022. "Working hours and gender wage differentials: Evidence from the American Working Conditions Survey," Labour Economics, Elsevier, vol. 76(C).
    17. Domenico Depalo & Raffaela Giordano & Evangelia Papapetrou, 2015. "Public–private wage differentials in euro-area countries: evidence from quantile decomposition analysis," Empirical Economics, Springer, vol. 49(3), pages 985-1015, November.
    18. Sile Padraigin O'Dorchai, 2008. "Do women gain or lose from becoming mothers? A comparative wage analysis in 20 European countries," ULB Institutional Repository 2013/135835, ULB -- Universite Libre de Bruxelles.
    19. Garnero, Andrea & Kampelmann, Stephan & Rycx, François, 2013. "Part-time Work, Wages and Productivity: Evidence from Belgian Matched Panel Data," IZA Discussion Papers 7789, Institute of Labor Economics (IZA).
    20. Xin Meng & Dominique Meurs, 2001. "Différences de structure des emplois et écart salarial entre hommes et femmes en France," Economie & Prévision, La Documentation Française, vol. 148(2), pages 113-126.

    More about this item

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • 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
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

    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:ulb:ulbeco:2013/8555. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/ecsulbe.html .

    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: Benoit Pauwels (email available below). General contact details of provider: https://edirc.repec.org/data/ecsulbe.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.