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Is part-time employment beneficial for firm productivity?

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  • Nelen, A.C.

    (Research Centre for Educ and Labour Mark)

  • de Grip, A.

    (Research Centre for Educ and Labour Mark)

  • Fouarge, D.

    (Research Centre for Educ and Labour Mark)

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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Nelen, A.C. & de Grip, A. & Fouarge, D., 2011. "Is part-time employment beneficial for firm productivity?," ROA Research Memorandum 002, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    • Handle: RePEc:unm:umaror:2011002
    DOI: 10.26481/umaror.2011002
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    More about this item

    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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