Part-time Work and Wage Penalty Trend among Italian Women
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This paper studies the evolution of the full-time/part-time wage differential among Italian women
for the period 1993-2004. A generalized Heckman selection model is applied to estimate the wage
equations, controlling for endogeneity in the second step. An observed part-time wage penalty is
found. However, using the Oaxaca decomposition technique we actually find a (decreasing) wage
premium for part-timers. This can be explained either in terms of over-payment of given characteristics
or in terms of the values of the discrimination and the selection components. The individuals’
choice concerning their own type of contract appears to be important in determining the sign and
the extent of the wage gap.
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