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The part-time wage penalty: Does bargaining coverage outweigh regional differences in Spain?

Author

Listed:
  • Raul Ramos
  • Esteban Sanromá
  • Hipólito Simón

    (Universidad de Alicante, España)

Abstract

The use of part-time jobs is steadily increasing in most advanced economies. Previous literature has concluded that part-time workers suffer a wage penalty, but its magnitude varies across studies and countries. The part-time penalty is the otherwise unexplained element of the gap between full-time and part-time hourly earnings. One potential factor accounting for international differences in this penalty is the coverage of collective bargaining. This article outlines research examining wage differences between part-time and full-time male and female workers in Spain, a country with a very high level of coverage of collective agreements but very heterogeneous regional labour markets. Results are obtained using an econometric decomposition specifically adapted to matched employer–employee data. They show that intra-firm wage differentials for part- and full-time workers with the same characteristics are negligible. But results that are perhaps less expected are those based on the regional analysis – an unprecedented perspective compared with the previous literature. These results show that despite very significant differences in economies and labour markets, observed wage gaps between part-time and full-time workers in each Spanish region are also mainly explained by different endowments of individual, job and firm characteristics. Overall, our evidence highlights the over-riding role of wage setting mechanisms, specifically collective bargaining coverage, in minimising inter-regional differences in the wage penalty of part-time workers.

Suggested Citation

  • Raul Ramos & Esteban Sanromá & Hipólito Simón, 2016. "The part-time wage penalty: Does bargaining coverage outweigh regional differences in Spain?," The Economic and Labour Relations Review, , vol. 27(3), pages 368-386, September.
    • Handle: RePEc:sae:ecolab:v:27:y:2016:i:3:p:368-386
    DOI: 10.1177/1035304616659984
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    References listed on IDEAS

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    More about this item

    Keywords

    Collective bargaining; part-time work; regional differences; Spain; unexplained wage penalty; wage gap;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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