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Working Part-Time in the British, German and Dutch Labour Market: Scarring for the Wage Career?
Fouarge, Didier | Muffels, Ruud
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 129 (2009), Iss. 2 : pp. 217–226
25 Citations (CrossRef)
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Didier Fouarge, Research Centre for Education and the Labour Market (ROA), Department of Economics at Maastricht University, The Netherlands.
Ruud Muffels, Tilburg University, Department of Social Sciences, Warandelaan 2, 5037 AB Tilburg, The Netherlands.
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Abstract
The paper studies the long-term effect of part-time employment on the wage career using panel data for three countries. The main idea is to study the possible ’scarring" effects of part-time employment on future hourly wages up to ten years later in the career. Fixed effects panel wage regressions show the existence of a part-time wage penalty for females in all three countries and for males in the UK. Longer durations of part-time result in stronger negative wage effects. In the UK, a negative effect of past part-time employment is also found to persist even after a lasting transition to a fulltime job. The fact that the effect of part-time on wage is larger in the UK suggests that wage penalties, contrary to what could be expected, are smaller in regulated labour markets with a specific skills regime.