Do Women Expect Wage Cuts for Part-Time Work?

Annekatrin Schrenker
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Annekatrin Schrenker: DIW and FU Berlin

No 257, Rationality and Competition Discussion Paper Series from CRC TRR 190 Rationality and Competition

Abstract: Wage expectations for full- and part-time employment are key for understanding the labor supply decisions of women. However, whether women expect different wages between part-time and full-time work is not fully understood. Using German survey data, I quantify the expected full-time/part-time wage differential for a representative sample of female workers. I document that women, on average, expect only minor part-time wage penalties (1-3 percent). Comparing beliefs to selectivity-adjusted estimates of the part-time wage gap indicates that women’s mean expectations are realistic. I also show that women with children and those in managerial positions expect sizeable part-time wage cuts, with mothers overestimating the part-time wage penalty.

Keywords: expectations; female labor supply; part-time wage gap (search for similar items in EconPapers)
JEL-codes: D84 J22 J31 (search for similar items in EconPapers)
Date: 2020-09-08
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