Is Part-Time Employment Beneficial for Firm Productivity?

37 Pages Posted: 18 Jan 2011

See all articles by Annemarie Nelen

Annemarie Nelen

Maastricht University

Andries de Grip

Maastricht School of Business and Economics; IZA Institute of Labor Economics

Didier Fouarge

Maastricht University

Date Written: January 1, 2011

Abstract

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.

Keywords: Heterogeneous Labor, Matched Employer-Employee Data, Allocation of Labor, Timing of Labor Demand

JEL Classification: J24, L23, L25

Suggested Citation

Nelen, Annemarie and de Grip, Andries and Fouarge, Didier, Is Part-Time Employment Beneficial for Firm Productivity? (January 1, 2011). IZA Discussion Paper No. 5423, Available at SSRN: https://ssrn.com/abstract=1741611

Annemarie Nelen (Contact Author)

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Andries De Grip

Maastricht School of Business and Economics ( email )

P. O. Box 616
Maastricht, NL 6200 MD
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Didier Fouarge

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
58
Abstract Views
534
rank
391,482
PlumX Metrics