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The Part-Time Wage Gap across the Wage Distribution

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  • Patricia Gallego Granados
Abstract
Part-time work has vastly expanded in most OECD labor markets during the last decades. At the same time, full- and part-time wages have grown increasingly apart, leading to a substantial raw part-time wage penalty. Using quantile regression methods, this paper analyses the female part-time wage gap across the wage distribution and over time (1990-2009), while controlling for sample selection into full- and part-time employment. The estimated part-time gap is much lower than the raw gap. Nonetheless, a persistent part-time penalty is found for the lowest wage quartile. The wide divide between the observed and estimated part-time gap is due to strong positive selection into full-time work, which increases over time. On the contrary, sample selection into part-time employment goes from being positive at the beginning of the 1990s to disappearing by the end of the 2000s, even turning negative at the lower end of the distribution. An exploration of potential mechanisms reveals a large prevalence of job mismatch at the lower end of the part-time wage distribution as well as rising differences in the distribution of job tasks between full- and part-time employment.

Suggested Citation

  • Patricia Gallego Granados, 2019. "The Part-Time Wage Gap across the Wage Distribution," Discussion Papers of DIW Berlin 1791, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp1791
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    Cited by:

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    2. Annekatrin Schrenker, 2023. "Causal Misperceptions of the Part-Time Pay Gap," Rationality and Competition Discussion Paper Series 372, CRC TRR 190 Rationality and Competition.
    3. Annekatrin Schrenker, 2023. "Causal Misperceptions of the Part-Time Pay Gap," Berlin School of Economics Discussion Papers 0010, Berlin School of Economics.
    4. Devicienti, Francesco & Grinza, Elena & Vannoni, Davide, 2020. "Why do firms (dis)like part-time contracts?," Labour Economics, Elsevier, vol. 65(C).
    5. Breunig, Christoph & Grabova, Iuliia & Haan, Peter & Weinhardt, Felix & Weizsäcker, Georg, 2021. "Long-run expectations of households," Journal of Behavioral and Experimental Finance, Elsevier, vol. 31(C).
    6. Tom Günther & Ulrich C. Schneider & Fabian Stürmer-Heiber, 2023. "Working More for Less: Part-time Penalties Across the Working Hours Distribution?," Berlin School of Economics Discussion Papers 0025, Berlin School of Economics.
    7. Aline Zucco, 2019. "Occupational Characteristics and the Gender Pay Gap," Discussion Papers of DIW Berlin 1794, DIW Berlin, German Institute for Economic Research.
    8. Annekatrin Schrenker, 2023. "Causal Misperceptions of the Part-Time Pay Gap," Discussion Papers of DIW Berlin 2031, DIW Berlin, German Institute for Economic Research.
    9. Backhaus, Teresa & Schäper, Clara & Schrenker, Annekatrin, 2023. "Causal misperceptions of the part-time pay gap," Labour Economics, Elsevier, vol. 83(C).
    10. Zucco, Aline & Bächmann, Ann-Christin, 2020. "A question of gender? How promotions affect earnings," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224514, Verein für Socialpolitik / German Economic Association.
    11. Schrenker, Annekatrin, 2023. "Do women expect wage cuts for part-time work?," Labour Economics, Elsevier, vol. 80(C).

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    More about this item

    Keywords

    part-time employment; female wages; selection into employment; quantile regression;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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