 Dynamics of part-time employment to an aggregate shock: A sign-restriction approachEconomics Letters, 2019, vol. 183, issue C, - Abstract: This paper provides new stylized facts about the responses of the part-time employment share, the transition probability from full-time to part-time and the one from part-time to full-time jobs to a negative aggregate shock. The recessionary aggregate shock is identified within a sign-restriction VAR framework by imposing a short-run negative co-movement between unemployment and vacancies. The negative aggregate shock pushes the part-time employment share up. The latter increase is mainly due to a rise in the probability at which full-time work is transformed into part-time work without an intervening spell of unemployment. Given that such transitions mainly take place at the same firm/worker pair, these findings indicate that US firms use – in addition to the creation/destruction process – within-employment reallocation to adjust their labor input in recessionary episodes. Keywords: Part-time share; Transition probabilities; VAR models (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:183:y:2019:i:c:14 DOI: 10.1016/j.econlet.2019.108612 Access Statistics for this article Economics Letters is currently edited by Economics Letters Editorial Office More articles in Economics Letters from Elsevier |
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