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The Part-Time Pay Penalty for Women in Britain

Author

Listed:
  • Manning, Alan

    (London School of Economics)

  • Petrongolo, Barbara

    (University of Oxford)

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.

Suggested Citation

  • Manning, Alan & Petrongolo, Barbara, 2006. "The Part-Time Pay Penalty for Women in Britain," IZA Discussion Papers 2419, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2419
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    References listed on IDEAS

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    More about this item

    Keywords

    pay gaps; part-time work; occupational segregation;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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