Part-time wage penalties in Europe: A matter of selection or segregation?
Ariane Pailhé () and
Anne Solaz ()
No 250, Working Papers from ECINEQ, Society for the Study of Economic Inequality
Different profiles of female participation and part-time employment can be observed within Europe. The aim of this paper is to estimate whether there still exists a wage penalty for part-time workers in four European countries (i.e. Austria, Italy, Poland, and the United Kingdom) after the introduction of Council Directive 97/81/EC concerning the Framework Agreement on part-time work and aiming at eliminate any form of discrimination against part-time workers. Full-time hourly wages exceed part-time hourly wages in all countries. Several explanations can be found in literature: different characteristics of part-time and full-time workers in terms of human capital accumulation, preferences, level of union membership, etc. Also the presence of discrimination against part-time workers within firms can explain this positive wage gap. However the magnitude of these explanations may differ between countries. Using the EU-SILC for the year 2009, we study the full-time/part-time pay differential focusing on the contribution of segregation and selection in explaining the observed positive wage gap. Results show that segregation matters in explaining the full-time/part-time wage gap. We find also evidence of a significant part-time wage premium in Austria and Poland once we control for sample selection.
Keywords: work status; part-time employment; wage gap; decomposition; iscrimination. Classification-JEL: C31; J21; J22; J24; J31; J71. (search for similar items in EconPapers)
Pages: 39 pages
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Persistent link: https://EconPapers.repec.org/RePEc:inq:inqwps:ecineq2012-250
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