Part-Time Work, Fixed-Term Contracts, and the Returns to Experience

31 Pages Posted: 4 Jul 2011

See all articles by Daniel Fernández-Kranz

Daniel Fernández-Kranz

IE Business School

Marie Paul

University of Duisburg-Essen

Núria Rodríguez-Planas

City University New York (CUNY), Queens College; IZA Institute of Labor Economics

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Abstract

Using data from Spanish Social Security records, we investigate the returns to experience in different flexible work arrangements, including part-time and full-time work, and permanent and fixed-term contracts. We use a trivariate random effects model which consists of a three-equation system that is estimated simultaneously by Markov Chain Monte Carlo techniques. Our results indicate that there is a large pay gap for working part-time which persists many years after having resumed full-time work. We also find that working part-time involves lower returns to experience than standard full-time employment and thus a substantial negative wage differential for those employed part-time accumulates over time. Finally, we find that heterogeneity exist by contract type and motherhood status.

Keywords: fixed-term and permanent contracts, part-time employment, returns to experience of differential work histories, random effects models, MCMC, motherhood

JEL Classification: J16, J24, J31, J41, C11, C33

Suggested Citation

Fernandez-Kranz, Daniel and Paul, Marie and Rodriguez-Planas, Nuria, Part-Time Work, Fixed-Term Contracts, and the Returns to Experience. IZA Discussion Paper No. 5815. Available at SSRN: https://ssrn.com/abstract=1877628

Daniel Fernandez-Kranz (Contact Author)

IE Business School ( email )

c/ Mª de Molina, 11
Madrid, 28006
Spain
(0034) 915689600 (Phone)

Marie Paul

University of Duisburg-Essen ( email )

Lotharstr. 65
Duisburg, 47057
Germany

Nuria Rodriguez-Planas

City University New York (CUNY), Queens College ( email )

65-30 Kissena Blvd
Flushing, NY 11367-1597
United States

HOME PAGE: http://https://sites.google.com/site/nuriarodriguezplanas/

IZA Institute of Labor Economics

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

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