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Is There a Causal Effect of Working Part‐Time on Current and Future Wages?
Author(s) -
Paul Marie
Publication year - 2016
Publication title -
the scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/sjoe.12157
Subject(s) - economics , wage , context (archaeology) , work (physics) , hourly wage , identification (biology) , labour economics , multinomial probit , econometrics , causal inference , probit model , working time , mechanical engineering , paleontology , botany , engineering , biology
In this paper, I study the causal effects of part‐time work on current and future wages. To estimate these effects, I use a random effects model with a wage equation capturing the employment history and a dynamic multinomial probit component for the choice of employment status. Exclusion restrictions from the institutional context are exploited to support identification. The results suggest that working part‐time with few hours has a large causal effect on current wages, but more extensive part‐time work does not reduce current wages. However, both types of part‐time work lead to negative long‐term wage effects.