Cyclical and Market Determinants of Involuntary Part-Time Employment

42 Pages Posted: 15 Feb 2016

See all articles by Robert G. Valletta

Robert G. Valletta

Federal Reserve Bank of San Francisco; IZA Institute of Labor Economics

Leila Bengali

Yale University

Catherine van der List

Federal Reserve Banks - Federal Reserve Bank of San Francisco

Abstract

We examine the determinants of involuntary part-time employment, focusing on variation associated with the business cycle and variation attributable to more persistent structural features of the labor market. Our theoretical framework distinguishes between workers' decision to seek part-time work and employer demand for part-time work hours, emphasizing demand and supply determinants of involuntary part-time work such as workplace technology, labor costs, and workforce demographics. We conduct regression analyses using state-level panel and individual data for the years 2003-2014. The results show that the combination of cyclical variation and the influence of market-level factors can explain virtually all of the variation in the aggregate incidence of involuntary part-time employment since the Great Recession.

Keywords: part-time employment, business cycle, supply and demand

JEL Classification: J22, J23

Suggested Citation

Valletta, Robert G. and Bengali, Leila and van der List, Catherine, Cyclical and Market Determinants of Involuntary Part-Time Employment. IZA Discussion Paper No. 9738. Available at SSRN: https://ssrn.com/abstract=2732001

Robert G. Valletta (Contact Author)

Federal Reserve Bank of San Francisco ( email )

101 Market Street
San Francisco, CA 94105
United States
415-974-3345 (Phone)
415-977-4084 (Fax)

IZA Institute of Labor Economics

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

Leila Bengali

Yale University ( email )

New Haven, CT 06520
United States

Catherine Van der List

Federal Reserve Banks - Federal Reserve Bank of San Francisco

101 Market Street
San Francisco, CA 94105
United States

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