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Underemployment and Queues for Full Time Jobs: Evidence from Chile

Daniel Jaar, Alejandro González and Esteban Puentes

Working Papers from University of Chile, Department of Economics

Abstract: This article develops a double selection model in order to test whether part-time workers are excluded from full time jobs (underemployed) or choose to put themselves into distinct labour market segments. Results show statistical support for both exclusion and self-selection in the labour market. Additionally, they suggest that underemployment is mostly driven by the structural heterogeneity of the Chilean economy with human capital variables playing a secondary role. Wage equations are estimated as to further characterize each group; they show that the same economic segments that hire more full time workers pay wage premiums, a result consistent with the hypothesis of structural heterogeneity.

Pages: 32 pages
Date: 2016-10
New Economics Papers: this item is included in nep-lam
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Citations: View citations in EconPapers (1)

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