Is Part-Time Employment Beneficial for Firm Productivity?

Posted: 18 Dec 2013

See all articles by Annemarie Künn-Nelen

Annemarie Künn-Nelen

Maastricht University

Andries de Grip

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

Didier Fouarge

Maastricht University

Date Written: October 1, 2013

Abstract

With this article, the authors are the first to analyze and explain the relationship between part-time employment and firm productivity. Using a unique data set on the Dutch pharmacy sector that includes the working hours of all employees and a "hard" physical measure of firm productivity, the authors estimate a production function including heterogeneous employment shares based on working hours. The authors find that firms with a large part-time employment share are more productive than firms with a large share of full-time workers: a 10% increase in the part-time share is associated with 4.8% higher productivity. Additional data on the timing of labor demand show that this can be explained by a different allocation of part-timers compared with full-timers. This enables firms with large part-time employment shares to allocate their labor force more efficiently across working days.

Keywords: part-time employment, heterogeneous labor, matched employer–employee data, allocation of labor, timing of labor demand

JEL Classification: J20, J23

Suggested Citation

Künn-Nelen, Annemarie and de Grip, Andries and Fouarge, Didier, Is Part-Time Employment Beneficial for Firm Productivity? (October 1, 2013). Industrial and Labor Relations Review, Vol. 66, No. 5, 2013. Available at SSRN: https://ssrn.com/abstract=2368495

Annemarie Künn-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

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