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Does part-time work affect firms' employment structure and outcomes?

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  • Bergmann, Lea

Abstract

Shorter working hours reflect a fundamental tension in modern labor mar- kets: They may increase the labor force participation of women and improve work-life balance, but may impose organizational costs on firms through co- ordination frictions and reduced scheduling flexibility. I examine a 2001 Ger- man reform that granted employees in firms with 16 or more employees the legal right to reduce working hours permanently. Using firm-level administra- tive data and a difference-in-discontinuities design around the 16-employee threshold, I find no evidence that the mandate alters firms' employee struc- ture. Moreover, it does not affect firms' business volume or hiring behavior. These null effects can be explained by firms already accommodating part-time requests before the reform. Overall, the results indicate that the mandate did not generate detectable distortions in employment or firm performance.

Suggested Citation

  • Bergmann, Lea, 2026. "Does part-time work affect firms' employment structure and outcomes?," Ruhr Economic Papers 1217, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:343040
    DOI: 10.4419/96973402
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    Keywords

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    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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