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Nelen, Annemarie
Grip, Andries de
Fouarge, Didier
Year of Publication: 
Series/Report no.: 
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5423
This paper analyzes whether part-time employment is beneficial for firm productivity in the service sector. Using a unique dataset on the Dutch pharmacy sector that includes the work hours of all employees and a hard physical measure of firm productivity, we estimate a production function including heterogeneous employment shares based on work hours. We find that a larger part-time employment share leads to greater firm productivity. Additional data on the timing of labor demand show that part-time employment enables firms to allocate labor more efficiently. First, firms with part-time workers can bridge the gap between opening hours and a full-time work week. Second, we find that during opening hours part-time workers are scheduled differently than full-timers. For example, we find that part-time workers enable their full-time colleagues to take lunch breaks so that the firm can remain open during these times.
heterogeneous labor
matched employer-employee data
allocation of labor
timing of labor demand
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Working Paper

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