The Effect of Part-Time Work on Wages: Evidence from the Social Security Rules

Daniel Aaronson and Eric French

Journal of Labor Economics, 2004, vol. 22, issue 2, 329-352

Abstract: This article identifies the part-time wage effect, using hours variation caused by the social security rules. We show that work hours and wages drop sharply at ages 62 and 65. We argue that the hours decline causes the wage decline, resulting in a 25% wage penalty for men who cut their work week from 40 to 20 hours. However, we find little evidence for such an effect among women. We also show that models that fail to account for the joint determination of hours and wages will understate the labor supply response to a tax change by about 26%.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (123)

Downloads: (external link)
http://dx.doi.org/10.1086/381252 main text (application/pdf)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: The effect of part-time work on wages: evidence from the Social Security rules (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlabec:v:22:y:2004:i:2:p:329-352

Access Statistics for this article

More articles in Journal of Labor Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().