Employment Adjustment and Part-time Work: Lessons from the United States and the United Kingdom

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Abstract

We document that fluctuations in part-time employment play a major role in movements in hours per worker during cyclical swings in the labor market. Building on this result, we develop a stock-flow framework to describe the dynamics of part-time employment. The evolution of part-time employment is predominantly explained by cyclical changes in transitions between full-time and part-time employment. Those transitions occur overwhelmingly at the same employer, entail sizable changes in individual working hours and are associated with an increase in involuntary part-time work. Our findings provide a novel understanding of the cyclical dynamics of labor adjustment on the intensive margin.
Original languageEnglish
JournalAmerican Economic Journal: Macroeconomics
Volume11
Issue number1
Pages (from-to)389–435
Number of pages47
ISSN1945-7707
DOIs
Publication statusPublished - 2019

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