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Do women expect wage cuts for part-time work?

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  • Schrenker, Annekatrin

Abstract

I quantify the perceived changes in hourly wage rates associated with working different hours on the same job for a representative sample of female workers. While part-time working women expect significant hourly wage gains from switching to full-time work - 7% on average - full-time workers expect no effect on current wages when switching to part-time, on average. Perceived pecuniary losses from part-time work are most pronounced among full-time working mothers and women in managerial jobs. Using density forecasts, I document a large uncertainty about the perceived pay gap that correlates with the probability to report extreme wage penalties, as well as with worker characteristics. Comparing beliefs with selectivity-corrected estimates of the objective part-time penalty further indicates that full-time workers on average underestimate part-time wage losses, whereas part-time workers tend to overestimate full-time wage gains.

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  • Schrenker, Annekatrin, 2023. "Do women expect wage cuts for part-time work?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 80, pages 1-23.
    • Handle: RePEc:zbw:espost:307401
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    More about this item

    Keywords

    Expectations; female labor supply; part-time wage gap;
    All these keywords.

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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