Relative Labour Costs and the Growth of Part-Time Employment in British Manufacturing Industry

Patricia Rice

Economic Journal, 1990, vol. 100, issue 403, 1138-46

Abstract: This paper examines the extent to which changes in the structure of employment taxes, notably National Insurance contributions, by reducing the costs of employing part-time workers relative to those for their full-time counterparts, have contributed to the significant growth in part-time employment in British manufacturing industries. A model of the demand for different categories of labor is derived for a representative firm in an industry, and the degree of substitution between part-time and full-time employees is estimated using data for selected industry groups. Copyright 1990 by Royal Economic Society.

Date: 1990
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