IDEAS home Printed from https://ideas.repec.org/a/fip/fedreq/00016.html
   My bibliography  Save this article

Flows To and From Working Part Time for Economic Reasons and the Labor Market Aggregates During and After the 2007-09 Recession

Author

Listed:
  • Maria E. Canon
  • Marianna Kudlyak
  • Guannan Luo
  • Marisa Reed

Abstract

Using counterfactual exercises for the transition probabilities between full-time employment, part-time employment for economic reasons (PTER), part-time employment for noneconomic reasons (PTNER), unemployment, and out-of-the-labor-force similar to Shimer (2012), we find that, ceteris paribus, changes in the transition probabilities to and from PTER in the aftermath of the 2007-09 recession were mainly associated with changes in the composition of employment (full- versus part time, and PTER versus PTNER) instead of with changes in the distribution of individuals between employment and non-employment. Consequently, policymakers' attention to PTER implies a broader definition of resource underutilization in the labor market than a simple extensive employment margin as captured by the standard unemployment rate. It brings attention to the intensive employment margin and the quality of employment. Since PTER workers' share is highest in non-routine manual (typically, low-wage) occupations and given recent works on job polarization, it is a challenging task to disentangle cyclical versus structural factors behind an increased number of PTER workers after the 2007-09 recession.

Suggested Citation

  • Maria E. Canon & Marianna Kudlyak & Guannan Luo & Marisa Reed, 2014. "Flows To and From Working Part Time for Economic Reasons and the Labor Market Aggregates During and After the 2007-09 Recession," Economic Quarterly, Federal Reserve Bank of Richmond, issue 2Q, pages 87-111.
    • Handle: RePEc:fip:fedreq:00016
    as

    Download full text from publisher

    File URL: https://www.richmondfed.org/-/media/richmondfedorg/publications/research/economic_quarterly/2014/q2/kudlyak.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nir Jaimovich & Henry E. Siu, 2020. "Job Polarization and Jobless Recoveries," The Review of Economics and Statistics, MIT Press, vol. 102(1), pages 129-147, March.
    2. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    3. Robert Shimer, 2012. "Reassessing the Ins and Outs of Unemployment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(2), pages 127-148, April.
    4. Tomaz Cajner & Dennis Mawhirter & Christopher J. Nekarda & David Ratner, 2014. "Why is Involuntary Part-Time Work Elevated?," FEDS Notes 2014-04-14, Board of Governors of the Federal Reserve System (U.S.).
    5. Jaison R. Abel & Richard Deitz & Yaquin Su, 2014. "Are recent college graduates finding good jobs?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 20.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniel Borowczyk-Martins & Etienne Lalé, 2016. "The Rise of Part-time Employment," Sciences Po publications 2016-04, Sciences Po.
    2. Borowczyk-Martins, Daniel & Lalé, Etienne, 2020. "The ins and outs of involuntary part-time employment," Labour Economics, Elsevier, vol. 67(C).
    3. William E. Even & David A. Macpherson, 2019. "The Affordable Care Act and the Growth of Involuntary Part-Time Employment," ILR Review, Cornell University, ILR School, vol. 72(4), pages 955-980, August.
    4. Griffy, Benjamin & Gomis-Porqueras, Pedro, 2020. "Part and Full-Time Employment over the Business Cycle," MPRA Paper 105095, University Library of Munich, Germany.
    5. Daniel Borowczyk-Martins & Etienne Lalé, 2019. "Employment Adjustment and Part-Time Work: Lessons from the United States and the United Kingdom," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(1), pages 389-435, January.
    6. Robert G. Valletta & Leila Bengali & Catherine van der List, 2020. "Cyclical and Market Determinants of Involuntary Part-Time Employment," Journal of Labor Economics, University of Chicago Press, vol. 38(1), pages 67-93.
    7. Kang, Hyunju & Park, Jaevin & Suh, Hyunduk, 2020. "The rise of part-time employment in the great recession: Its causes and macroeconomic effects," Journal of Macroeconomics, Elsevier, vol. 66(C).
    8. Daniel Borowczyk-Martins & Etienne Lalé, 2018. "The welfare effects of involuntary part-time work," Oxford Economic Papers, Oxford University Press, vol. 70(1), pages 183-205.
    9. repec:hal:spmain:info:hdl:2441/4f4eu80n0h8r28g6dadlk02mtb is not listed on IDEAS
    10. Crawley, Andrew & Welch, Sarah & Yung, Julieta, 2021. "Improving estimates of job matching efficiency with different measures of unemployment," Journal of Macroeconomics, Elsevier, vol. 67(C).
    11. repec:hal:spmain:info:hdl:2441/7arg7blugi9b2o08qjafcpg8e2 is not listed on IDEAS
    12. repec:hal:wpspec:info:hdl:2441/7arg7blugi9b2o08qjafcpg8e2 is not listed on IDEAS
    13. Daniel Borowczyk-Martins, 2017. "Why does part-time employment increase in recessions?," IZA World of Labor, Institute of Labor Economics (IZA), pages 397-397, October.
    14. Matthias Seckler, 2022. "Increasing Inequality in Long‐Term Earnings: A Tale of Educational Upgrading and Changing Employment Patterns," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(3), pages 617-652, September.
    15. Marianna Kudlyak, 2015. "What We Know About Wage Adjustment During the 2007-09 Recession and Its Aftermath," Economic Quarterly, Federal Reserve Bank of Richmond, issue 3Q, pages 225-244.
    16. repec:hal:wpspec:info:hdl:2441/4f4eu80n0h8r28g6dadlk02mtb is not listed on IDEAS
    17. Toshihiko Mukoyama & Mototsugu Shintani & Kazuhiro Teramoto, 2021. "Cyclical Part‐Time Employment in an Estimated New Keynesian Model with Search Frictions," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 53(8), pages 1929-1968, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mary A. Burke & Alicia Sasser Modestino & Shahriar Sadighi & Rachel B. Sederberg & Bledi Taska, 2019. "No Longer Qualified? Changes in the Supply and Demand for Skills within Occupations," Working Papers 20-3, Federal Reserve Bank of Boston.
    2. Carlos Carrillo‐Tudela & Ludo Visschers, 2023. "Unemployment and Endogenous Reallocation Over the Business Cycle," Econometrica, Econometric Society, vol. 91(3), pages 1119-1153, May.
    3. Cortes, Guido Matias & Jaimovich, Nir & Nekarda, Christopher J. & Siu, Henry E., 2020. "The dynamics of disappearing routine jobs: A flows approach," Labour Economics, Elsevier, vol. 65(C).
    4. Christopher L. Smith, 2013. "The dynamics of labor market polarization," Finance and Economics Discussion Series 2013-57, Board of Governors of the Federal Reserve System (U.S.).
    5. Albertini, Julien & Hairault, Jean-Olivier & Langot, François & Sopraseuth, Thepthida, 2017. "A Tale of Two Countries: A Story of the French and US Polarization," IZA Discussion Papers 11013, Institute of Labor Economics (IZA).
    6. Borowczyk-Martins, Daniel & Lalé, Etienne, 2020. "The ins and outs of involuntary part-time employment," Labour Economics, Elsevier, vol. 67(C).
    7. Filippos Petroulakis, 2023. "Task Content and Job Losses in the Great Lockdown," ILR Review, Cornell University, ILR School, vol. 76(3), pages 586-613, May.
    8. David J. Deming, 2017. "The Growing Importance of Social Skills in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1593-1640.
    9. Ay?egül ?ahin & Joseph Song & Giorgio Topa & Giovanni L. Violante, 2014. "Mismatch Unemployment," American Economic Review, American Economic Association, vol. 104(11), pages 3529-3564, November.
    10. Alex Chernoff & Casey Warman, 2023. "COVID-19 and implications for automation," Applied Economics, Taylor & Francis Journals, vol. 55(17), pages 1939-1957, April.
    11. Davide Consoli & Francesco Vona & Francesco Rentocchini, 2016. "That was then, this is now: skills and routinization in the 2000s," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(5), pages 847-866.
    12. Hudomiet, Péter & Willis, Robert J., 2022. "Computerization, obsolescence and the length of working life," Labour Economics, Elsevier, vol. 77(C).
    13. van der Velde, Lucas, 2022. "Phasing out: Routine tasks and retirement," Journal of Comparative Economics, Elsevier, vol. 50(3), pages 784-803.
    14. Giovanni DOSI & Maria Enrica VIRGILLITO, 2019. "Whither the evolution of the contemporary social fabric? New technologies and old socio‐economic trends," International Labour Review, International Labour Organization, vol. 158(4), pages 593-625, December.
    15. Daniel Borowczyk-Martins & Etienne Lalé, 2018. "The welfare effects of involuntary part-time work," Oxford Economic Papers, Oxford University Press, vol. 70(1), pages 183-205.
    16. Blanas, Sotiris & Oikonomou, Rigas, 2023. "COVID-induced economic uncertainty, tasks and occupational demand," Labour Economics, Elsevier, vol. 81(C).
    17. Christopher L. Foote & Richard W. Ryan, 2015. "Labor-Market Polarization over the Business Cycle," NBER Macroeconomics Annual, University of Chicago Press, vol. 29(1), pages 371-413.
    18. Nikolaos Terzidis & Raquel Ortega‐Argilés, 2021. "Employment polarization in regional labor markets: Evidence from the Netherlands," Journal of Regional Science, Wiley Blackwell, vol. 61(5), pages 971-1001, November.
    19. Fran Stewart & Kathryn Kelley, 2020. "Connecting Hands and Heads: Retooling Engineering Technology for the “Smart†Manufacturing Workplace," Economic Development Quarterly, , vol. 34(1), pages 31-45, February.
    20. Cortes, Guido Matias & Lerche, Adrian & Schönberg, Uta & Tschopp, Jeanne, 2023. "Technological Change, Firm Heterogeneity and Wage Inequality," IZA Discussion Papers 16070, Institute of Labor Economics (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedreq:00016. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Pascasio (email available below). General contact details of provider: https://edirc.repec.org/data/frbrius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.