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Is Part-Time Employment Beneficial for Firm Productivity?

Author

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  • Künn-Nelen, Annemarie

    (ROA, Maastricht University)

  • de Grip, Andries

    (ROA, Maastricht University)

  • Fouarge, Didier

    (ROA, Maastricht University)

Abstract

This paper analyzes whether part-time employment is beneficial for firm productivity in the service sector. Using a unique dataset on the Dutch pharmacy sector that includes the work hours of all employees and a “hard” physical measure of firm productivity, we estimate a production function including heterogeneous employment shares based on work hours. We find that a larger part-time employment share leads to greater firm productivity. Additional data on the timing of labor demand show that part-time employment enables firms to allocate labor more efficiently. First, firms with part-time workers can bridge the gap between opening hours and a full-time work week. Second, we find that during opening hours part-time workers are scheduled differently than full-timers. For example, we find that part-time workers enable their full-time colleagues to take lunch breaks so that the firm can remain open during these times.

Suggested Citation

  • Künn-Nelen, Annemarie & de Grip, Andries & Fouarge, Didier, 2011. "Is Part-Time Employment Beneficial for Firm Productivity?," IZA Discussion Papers 5423, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5423
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    References listed on IDEAS

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    More about this item

    Keywords

    timing of labor demand; heterogeneous labor; matched employer-employee data; allocation of labor;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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