The determinants of part-time work in EU countries: empirical investigations with macro-panel data

This paper aims to identify the contribution of the business cycle and structural factors to the development of part-time employment in the EU-15 countries, through the exploitation of both cross-sectional and time series variations over the past two decades.

This analysis is used to comment on whether part-time jobs have been used as a flexible work arrangement by firms in the EU-15 over this period.

Key results include that the business cycle, as measured by either the output gap or real GDP growth, is found to exert a negative effect on part-time employment developments. This is consistent with firms utilising part-time employment as a means of adjusting their labour force to economic conditions. Correspondingly, involuntary part-time employment is found to be countercyclical, being higher in troughs of economic activity. Splitting our sample by age and gender groups reveals a very significant effect of the business cycle on the rate of part-time work for young and male prime-age workers. Conversely, the effect is very weak for women and insignificant for older workers.