Dynamics of part-time employment to an aggregate shock: A sign-restriction approach

Idriss Fontaine

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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)
Date: 2019-10
Note: View the original document on HAL open archive server: https://hal.univ-reunion.fr/hal-03665973v1
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Citations: View citations in EconPapers (7)

Published in Economics Letters, 2019, 183, pp.108612. ⟨10.1016/j.econlet.2019.108612⟩

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Related works:
Journal Article: Dynamics of part-time employment to an aggregate shock: A sign-restriction approach (2019)
Working Paper: Dynamics of Part-Time Employment to an Aggregate Shock: a Sign-Restriction Approach (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03665973

DOI: 10.1016/j.econlet.2019.108612

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