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The Effect of Employee Benefits on the Demand for Part-Time Workers

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  • Mark Montgomery
  • James Cosgrove

Abstract

This paper uses the results of a unique survey of child care centers in 1989 to examine the effect of fringe benefits on the demand for part-time teachers and teacher aides. An analysis that controls for wages and other establishment characteristics shows that as the level of fringe benefit payments at the establishment rises, hours of work by part-time workers fall significantly relative to the hours worked by full-time teachers and teacher aides. Particularly influential are insurance payments (such as health and dental), which have an effect more than twice that of fringe benefits in general.

Suggested Citation

  • Mark Montgomery & James Cosgrove, 1993. "The Effect of Employee Benefits on the Demand for Part-Time Workers," ILR Review, Cornell University, ILR School, vol. 47(1), pages 87-98, October.
    • Handle: RePEc:sae:ilrrev:v:47:y:1993:i:1:p:87-98
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    Cited by:

    1. Casey B. Mulligan, 2014. "The Economics of Work Schedules under the New Hours and Employment Taxes," NBER Working Papers 19936, National Bureau of Economic Research, Inc.
    2. Paige Qin & Michael Chernew, 2013. "Compensating Wage Differentials and the Impact of Health Insurance in the Public Sector on Wages and Hours," NBER Chapters, in: State and Local Health Plans for Active and Retired Public Employees, National Bureau of Economic Research, Inc.
    3. Barry T. Hirsch, 2005. "Why Do Part-Time Workers Earn Less? The Role of Worker and Job Skills," ILR Review, Cornell University, ILR School, vol. 58(4), pages 525-551, July.
    4. Jennifer Feenstra Schultz & David Doorn, 2009. "Employer Health Benefit Costs and Demand for Part-Time Labor," Working Papers 09-08, Center for Economic Studies, U.S. Census Bureau.
    5. David M. Cutler & Brigitte C. Madrian, 1998. "Labor Market Responses to Rising Health Insurance Costs: Evidence on Hours Worked," RAND Journal of Economics, The RAND Corporation, vol. 29(3), pages 509-530, Autumn.
    6. William Even & David Macpherson, 2004. "Do Pensions Impede Phased Retirement?," Labor and Demography 0407001, University Library of Munich, Germany.
    7. Maite BLÁZQUEZ CUESTA & Julián MORAL CARCEDO, 2014. "Women's part-time jobs: “Flexirisky” employment in five European countries," International Labour Review, International Labour Organization, vol. 153(2), pages 269-292, June.
    8. Didem Tuzemen & Makoto Nakajima, 2014. "Health Care Reform or Labor Market Reform? A Quantitative Analysis of the Affordable Care Act," 2014 Meeting Papers 1325, Society for Economic Dynamics.
    9. Alec R. Levenson, 1996. "Recent Trends In Part‐Time Employment," Contemporary Economic Policy, Western Economic Association International, vol. 14(4), pages 78-89, October.
    10. A. M. Wolaver & T. D. McBride & B. L. Wolfe, "undated". "Decreasing Opportunities for Low-Wage Workers: The Role of the Nondiscrimination Law for Employer-Provided Health Insurance," Institute for Research on Poverty Discussion Papers 1124-97, University of Wisconsin Institute for Research on Poverty.
    11. Françoise Delmez & Vincent Vandenberghe, 2017. "Working long hours: less productive but less costly? Firm-level evidence from Belgium," LIDAM Discussion Papers IRES 2017022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    12. Jonathan Gruber, 1998. "Health Insurance and the Labor Market," NBER Working Papers 6762, National Bureau of Economic Research, Inc.
    13. repec:eee:labchp:v:3:y:1999:i:pc:p:3309-3416 is not listed on IDEAS
    14. Georges A. Tanguay & Ugo Lachapelle, 2019. "Potential Impacts of Telecommuting on Transportation Behaviours, Health and Hours Worked in Québec," CIRANO Project Reports 2019rp-07, CIRANO.
    15. Mark Partridge, 2002. "Moonlighting in a High Growth Economy: Evidence from U.S. State‐Level Data," Growth and Change, Wiley Blackwell, vol. 33(4), pages 424-452, September.
    16. Sang-Hyop Lee & Gerard Russo & Lawrence H. Nitz & Abdul Jabbar, 2005. "The Effect of Mandatory Employer-Sponsored Insurance (ESI) on Health Insurance Coverage and Labor Force Utilization in Hawaii: Evidence from the Current Population Survey (CPS) 1994-2004," Working Papers 200512, University of Hawaii at Manoa, Department of Economics.

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