Part-Time Wage-Gap in Germany: Evidence across the Wage Distribution

Abstract

This paper uses insights from labour-market segmentation theory to investigate the wage differences between part-time and full-time workers in Germany at different parts of the wage distribution. This is accomplished with the use of a quintile regression and panel data from the SOEP (1991-2008). To get more insight on the part-time wage-gap, we apply a counterfactual wage decomposition analysis. The results show that, in the lower end of the wage distribution, part-time workers receive lower returns for their labour market characteristics, indicating the segmentation of the labour market. In contrast, at the top of the wage distribution, the part-time wage gap is fully explained by the difference in the characteristics of part-timers and full-timers.