Part-Time Work, Fixed-Term Contracts, and the Returns to Experience

Daniel Fernández-Kranz (), Marie Paul 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 5815, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using data from Spanish Social Security records, we investigate the returns to experience in different flexible work arrangements, including part-time and full-time work, and permanent and fixed-term contracts. We use a trivariate random effects model which consists of a three-equation system that is estimated simultaneously by Markov Chain Monte Carlo techniques. Our results indicate that there is a large pay gap for working part-time which persists many years after having resumed full-time work. We also find that working part-time involves lower returns to experience than standard full-time employment and thus a substantial negative wage differential for those employed part-time accumulates over time. Finally, we find that heterogeneity exist by contract type and motherhood status.

Keywords: returns to experience of differential work histories; random effects models; fixed-term and permanent contracts; MCMC; part-time employment; motherhood (search for similar items in EconPapers)
JEL-codes: C11 C33 J16 J24 J31 J41 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2011-06
New Economics Papers: this item is included in nep-bec, nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published - substantially revised version published in: Oxford Bulletin of Economics and Statistics, 2015, 77 (4), 512 - 541

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Journal Article: Part-Time Work, Fixed-Term Contracts, and the Returns to Experience (2015)
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