Employment Adjustment and Part-Time Jobs: The U.S. and the U.K. In the Great Recession

48 Pages Posted: 4 Apr 2016

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

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Abstract

We document that fluctuations in part-time employment play a major role in movements in hours per worker, especially during cyclical swings in the labor market. Building on this result, we propose a novel representation of the intensive margin based on a stock-flow framework. The evolution of part-time employment is predominantly explained by cyclical changes in transitions between full-time and part-time employment, which occur overwhelmingly at the same employer and entail large changes in individuals' working hours. We discuss implications for a large class of macroeconomic models that map individual decisions along the extensive/intensive margins onto aggregate labor market outcomes.

Keywords: employment, hours, part-time work, Great Recession

JEL Classification: E24, E32, J21

Suggested Citation

Borowczyk-Martins, Daniel and Lalé, Etienne, Employment Adjustment and Part-Time Jobs: The U.S. and the U.K. In the Great Recession. IZA Discussion Paper No. 9847. Available at SSRN: https://ssrn.com/abstract=2757957

Daniel Borowczyk-Martins (Contact Author)

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Etienne Lalé

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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