On the Determinants of Employer Demand for Part-Time Workers

Abstract

This paper uses a survey of private establishments to examine the determinants of the firm's relative demand for partand full-time workers. The elasticity of substitution of part-time for full-time workers is about 1.5, considerably lower than previous estimates with aggregate data. The results indicate that the quasi-fixed labor costs have a negative impact on the proportion of part-timers in a firm's work force.