Working more for less: Part-time penalties across the working hours distribution

Tom Günther, Ulrich Schneider and Fabian Stürmer-Heiber

No 2023/5, Discussion Papers from Free University Berlin, School of Business & Economics

Abstract: We use German administrative and survey data to investigate the heterogeneity of part-time penalties in hourly wages and growth rates. Exploiting tax reforms for identification, we find substantial heterogeneity in part-time wage penalties from -28.3% to -7.2% compared to full-time. The heterogeneity in wage growth penalties is less pronounced. Both penalties do not decrease linearly with additional working hours. More weekly working hours might result in a higher hourly wage penalty. The shape of the penalties is driven by workers with non-demanding tasks and professions where working around 30 weekly hours is uncommon, and relatively many females work.

Keywords: part-time employment; wage dynamics; female labor supply (search for similar items in EconPapers)
JEL-codes: J16 J24 J31 (search for similar items in EconPapers)
Date: 2023
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Related works:
Working Paper: Working More for Less: Part-time Penalties Across the Working Hours Distribution? (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:fubsbe:20235

DOI: 10.17169/refubium-40573

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