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Part‐Time Work, Fixed‐Term Contracts, and the Returns to Experience
Author(s) -
FernándezKranz Daniel,
Paul Marie,
RodríguezPlanas Núria
Publication year - 2015
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/obes.12073
Subject(s) - working time , term (time) , wage , markov chain monte carlo , work (physics) , economics , social security , markov chain , fixed effects model , econometrics , monte carlo method , random effects model , labour economics , mathematics , statistics , panel data , engineering , physics , medicine , mechanical engineering , market economy , meta analysis , quantum mechanics
Using data from Spanish Social Security records, we investigate the returns to experience for female workers in different flexible work arrangements. Our model consists of four random‐effects equations simultaneously estimated using Markov Chain Monte Carlo techniques. We find a large negative wage effect of working part‐time (PT), which differs by motherhood status and contract type. We also find that working PT involves lower returns to experience than standard full‐time employment and thus a substantial negative wage effect accumulates over time for those employed PT. Finally, our simulations reveal that working PT also raises the probability of working under a fixed‐term contract.