The Part-Time Pay Penalty for Women in Britain

32 Pages Posted: 26 Nov 2006

See all articles by Alan Manning

Alan Manning

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP)

Barbara Petrongolo

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Multiple version iconThere are 3 versions of this paper

Date Written: November 2006

Abstract

Women in Britain who work part-time have, on average, hourly earnings about 25% less than that of women working full-time. This gap has widened greatly over the past 30 years. This paper tries to explain this part-time pay penalty. It shows that a sizeable part of the penalty can be explained by the differing characteristics pf FT and PT women. Inclusion of standard demographics halves the estimate of the pay penalty. But inclusion of occupation makes the pay penalty very small, suggesting that almost the entire unexplained gap is due to occupational segregation. The rise in the pay penalty over time is partly a result of a rise in occupational segregation and partly the general rise in wage inequality. Policies to reduce the pay penalty have had little effect and it is likely that it will not change much unless better jobs can be made available on a part-time basis.

Keywords: part-time work, pay gaps, occupational segregation

JEL Classification: J24, J31, J62

Suggested Citation

Manning, Alan and Petrongolo, Barbara, The Part-Time Pay Penalty for Women in Britain (November 2006). IZA Discussion Paper No. 2419. Available at SSRN: https://ssrn.com/abstract=947068

Alan Manning

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom
(44 20) 7955 6078 (Phone)

Barbara Petrongolo (Contact Author)

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom
+44 20 7955 7799 (Phone)
+44 20 7955 7595 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

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

Register to save articles to
your library

Register

Paper statistics

Downloads
66
Abstract Views
708
rank
290,523
PlumX Metrics