Employment Adjustment and Part-Time Work: Lessons from the United States and the United Kingdom

American Economic Journal: Macroeconomics, Vol. 11(1), January 2019, Pages 389-435.

44 Pages Posted: 8 Dec 2014 Last revised: 9 Jan 2019

See all articles by Daniel Borowczyk-Martins

Daniel Borowczyk-Martins

Copenhagen Business School

Etienne Lalé

University of Quebec at Montreal (UQAM) - Université du Québec à Montréal; CIRANO; IZA

Multiple version iconThere are 2 versions of this paper

Date Written: December 1, 2017

Abstract

We document that fluctuations in part-time employment play a major role in movements in hours per worker during cyclical swings in the labor market. Building on this result, we develop a stock-flow framework to describe the dynamics of part-time employment. The evolution of part-time employment is predominantly explained by cyclical changes in transitions between full-time and part-time employment. Those transitions occur overwhelmingly at the same employer, entail sizable changes in individuals’ working hours and are associated with an increase in involuntary part-time work. Our findings provide a novel understanding of the cyclical dynamics of labor adjustment on the intensive margin.

Keywords: Employment, Hours, Part-time Work, Business Cycles, Demand and Supply of Labor

JEL Classification: E24, E32, J21, J23

Suggested Citation

Borowczyk-Martins, Daniel and Lalé, Etienne, Employment Adjustment and Part-Time Work: Lessons from the United States and the United Kingdom (December 1, 2017). American Economic Journal: Macroeconomics, Vol. 11(1), January 2019, Pages 389-435.. Available at SSRN: https://ssrn.com/abstract=2534976 or http://dx.doi.org/10.2139/ssrn.2534976

Daniel Borowczyk-Martins

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Etienne Lalé (Contact Author)

University of Quebec at Montreal (UQAM) - Université du Québec à Montréal ( email )

CP 8888 Succ Centre Ville
Montréal, Québec H3C3P8
Canada

CIRANO ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

IZA ( email )

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

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