Thursday, June 7, 2007

Differences in Wages between Part time and Full Time

Reasons why there is a difference in wage between part time and full time worker include;

  • Lower union density in part time jobs - yes. part time see less benefit from joining unions
  • Part time Usually employed by the public sector - To some extent, although it is not clear cut. There are many part time jobs in the private sector.
  • As they work less hours MRP will be lower - Not necessarily. It would be better to say those who work part time have less opportunity to get on the job training. Therefore, they are more likely to remain unskilled. This is one reason why they have lower MRP and therefore get higher wages. Some part time workers (e.g. management consulatants may have a high MRP and wage.
  • Part time Workers often work with less formal contracts, therefore they are perhaps more likely to work for monopsony employers and get lower paid as a result.
  • Part time workers more likely to be in service sector and jobs which are traditionally low paid, e.g. cleaners, bar staff e.t.c.. These jobs have elastic supply and low skills qualifications.

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