The long-term consequences of nontraditional employment

Abstract

Lower pay of former temporary employees and higher pay of men formerly self-employed are likely caused by unobserved heterogeneity. Nonetheless, in wage growth models that eliminate this bias, past part-time work has a negative effect on current wages, which varies with gender and whether the part-time status was voluntary or involuntary. This article explores the question of whether workers who voluntarily choose nontraditional employment will eventually suffer serious deprivation as a result.