 Incidence and Duration of Unemployment Spells: Implications on the Wage Differentials of Part‐Time and Full‐Time WorkersJohn Baffoe‐Bonnie Contemporary Economic Policy, 2003, vol. 21, issue 2, 227-242 Abstract: This article analyzes the extent to which incidence of unemployment and duration of unemployment spells affect the wage differentials between full‐time and part‐time workers. The estimation results of a sample selectivity bias–adjusted wage equation reveal that high incidences of unemployment are associated with low wages for both full‐time and part‐time workers. However, the reduction in wages due to incidence of unemployment is larger for full‐time workers in high‐paid jobs than for their part‐time counterparts. Duration of unemployment spells affects full‐time and part‐time workers differently. In general, longer unemployment spells tend to increase the wages of full‐time workers but tend to depress the wages of part‐time workers. Although the probability of unemployment is not a factor in explaining the wage differential, the duration of unemployment accounts for a substantial portion (about 66.6% in full sample) of the wage differential that exists between full‐time and part‐time workers. Date: 2003 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:coecpo:v:21:y:2003:i:2:p:227-242 Ordering information: This journal article can be ordered from Access Statistics for this article Contemporary Economic Policy is currently edited by Brad R. Humphreys More articles in Contemporary Economic Policy from Western Economic Association International Contact information at EDIRC. |
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