Is Part-Time Employment Beneficial for Firm Productivity?
This paper analyzes whether part-time employment is beneficial for firm productivityin the service sector. Using a unique dataset on the Dutch pharmacy sectorthat includes the work hours of all employees and a “hard” physical measure offirm productivity, we estimate a production function including heterogeneousemployment shares based on work hours. We find that a larger part-time employmentshare leads to greater firm productivity. Additional data on the timing of labordemand show that part-time employment enables firms to allocate labor moreefficiently. First, firms with part-time workers can bridge the gap between openinghours and a full-time work week. Second, we find that during opening hours part-timeworkers are scheduled differently than full-timers. For example, wefind that part-time workers enable their full-time colleagues to takelunch breaks so that the firm can remain open during these times.
|Date of creation:||2011|
|Date of revision:|
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