Abstract
This paper examines the factors contributing to wage discrepancies between part-time and full-time employment. We first theoretically explore the relationship between hours and wages within the presence of a wage bargaining model involving the union and the firm. The model incorporates workers’ coordination costs and reduced bargaining power for part-time positions. These elements are linked to the hours gap between part- and full-time workers within the firm, also referred to as the full-time equivalent. Using harmonized data from the 2018 Structure of Earnings Survey for 10 European countries, we document a strong relationship between full-time equivalent status and the part-time wage penalty. This relationship is observed consistently across demographic groups defined by gender, education, age, occupation, and firm size. Finally, we show that controlling for the full-time equivalent substantially reduces the unexplained component of the part-time wage gap.
| Original language | English |
|---|---|
| Pages (from-to) | 1090-1116 |
| Number of pages | 27 |
| Journal | Economic Analysis and Policy |
| Volume | 92 |
| DOIs | |
| Publication status | Published - Jul 2026 |
Keywords
- Coordination costs
- Full-time equivalent
- Hours-wage relationship
- Part-time
- Unions
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