Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/35865 
Year of Publication: 
2009
Series/Report no.: 
IZA Discussion Papers No. 4342
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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.
Subjects: 
Fixed-term and permanent contract
hourly wage levels and growth
prime-aged women
fixed-effects estimator
differential measurement error of HS variable
underlying channels
JEL: 
J13
J16
J21
J22
J31
J62
C23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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