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Dynamics of Part-Time Employment to an Aggregate Shock: a Sign-Restriction Approach

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  • Idriss Fontaine

    (CEMOI - Centre d'Économie et de Management de l'Océan Indien - UR - Université de La Réunion)

Abstract

This paper provides new stylized facts about the responses of the part-time employment share, the transition probability from full-time to part-time and the one from part-time to full-time jobs to a negative aggregate shock. The recessionary aggregate shock is identi ed within a sign-restriction VAR framework by imposing a short-run negative co-movement between unemployment and vacancies. The negative aggregate shock pushes the part-time employment share up. The latter increase is mainly due to a rise in the probability at which full-time work is transformed into part-time work without an intervening spell of unemployment. Given that such transitions mainly take place at the same fi rm/worker pair, these findings indicate that US fi rms use - in addition to the creation/destruction process - within-employment reallocation to adjust their labor input in recessionary episodes.

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  • Idriss Fontaine, 2019. "Dynamics of Part-Time Employment to an Aggregate Shock: a Sign-Restriction Approach," Working Papers hal-03665947, HAL.
    • Handle: RePEc:hal:wpaper:hal-03665947
    Note: View the original document on HAL open archive server: https://hal.univ-reunion.fr/hal-03665947
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    Cited by:

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    2. Daniel Auer, 2022. "Firing discrimination: Selective labor market responses of firms during the COVID-19 economic crisis," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-30, January.
    3. Chassamboulli, Andri & Fontaine, Idriss & Gálvez-Iniesta, Ismael & Gomes, Pedro, 2024. "Immigration and labour market flows," Labour Economics, Elsevier, vol. 86(C).
    4. Carreño, José Gabo & Uras, Burak, 2024. "Macro welfare effects of flexible labor contracts," European Economic Review, Elsevier, vol. 161(C).

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    More about this item

    Keywords

    part-time share; transition probabilities; VAR models JEL classifications: E24; E32; J6;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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