Working Paper: CEPR ID: DP234
Authors: John Ermisch; Robert E. Wright
Abstract: An analysis of hourly pay that allows for the choice of whether to work full-time, part-time or not at all (using the 1980 Women in Employment Survey) finds significant sample selection bias for women in full-time jobs. Part of the observed differential between the hourly pay of full-timers and part-timers arises because of self-selection of women who can command higher pay into full-time employment. A significant part also arises because work experience and education are found to be remunerated at a lower rate in part-time than in full-time employment. Thus, the larger proportion of women than men in part-time jobs contributes to women's lower pay separately from gender differences in human capital attributes.
Keywords: wages; part-time and full-time work; women; labour supply; selection bias
JEL Codes: J24; J31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Higher wages (J39) | Full-time employment (J29) |
| Full-time employment (J29) | Higher wages (J39) |
| Part-time employment (J22) | Lower wages (J31) |
| Work experience (M53) | Higher wages (Full-time) (J39) |
| Work experience (M53) | Higher wages (Part-time) (J38) |
| Education (I29) | Higher wages (Full-time) (J39) |
| Education (I29) | Higher wages (Part-time) (J38) |
| Full-time employment (J29) | Higher return on education (I26) |
| Part-time employment (J22) | Lower return on education (I26) |