The Part-Time Pay Penalty in a Segmented Labor Market

Daniel Fernández-Kranz () and Núria Rodriguez-Planas
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Daniel Fernández-Kranz: IE Business School, Madrid
Authors registered in the RePEc Author Service: Daniel Fernandez Kranz

No 4342, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: While much of the literature that investigates the part-time (PT) / full-time (FT) hourly wage differential and its causes focuses on average effects, very few studies analyze the heterogeneous effects of PT work across different subgroups, despite the policy relevance of understanding channels behind the (raw) PT penalty in different labor markets. This paper is the first to examine the implications of switching to PT work for women's subsequent earnings trajectories, distinguishing by their type of contract: permanent or fixed-term. Using a 21-year unbalanced Social Security records panel of over 76,000 prime-aged women strongly attached to the Spanish labor market, we find that PT work aggravates the segmentation of the labor market insofar there is a PT pay penalty and this penalty is larger and more persistent in the case of women with fixed-term contracts. The paper discusses problems arising in empirical estimation, and how to address them. It concludes with policy implications relevant for Continental Europe and its dual structure of employment protection.

Keywords: differential measurement error of HS variable; prime-aged women; fixed-term and permanent contract; hourly wage levels and growth; fixed-effects estimator; underlying channels (search for similar items in EconPapers)
JEL-codes: C23 J13 J16 J21 J22 J31 J62 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2009-08
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published in: Labour Economics, 2011, 18 (5), 591-606

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Related works:
Working Paper: The Part-Time Pay Penalty in a Segmented Labor Market (2015)
Journal Article: The part-time pay penalty in a segmented labor market (2011)
Working Paper: The Part-Time Pay Penalty in a Segmented Labor Market (2010)
Working Paper: The part-time pay penalty in a segmented labor market (2009)
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