The part-time wage penalty is greater for those working part time but wanting a full-time job (i.e., those whose reasons for working part time are categorized by the BLS as for economic reasons, which includes slack work or business conditions and could only find part-time work). 2018. The author thanks Larry Mishel and Ben Zipperer of EPI for their assistance with data and reviews of this report. If you're looking for remote temporary or part-time work, then FlexJobs is an excellent website. The company had never had a. But a taxpayer who does not need to file a return as he is exempt from paying taxes would not want to allow any unnecessary tax deduction by his employer. This group working part time for noneconomic reasons excludes the over 7.7 million who usually work full time but worked one to 34 hours in the last week because of vacations, holidays, weather, family obligations, or other reasons (according to 2019 data from BLS 2020a). 2014. 2016. Industry and occupation controls are dummies for Census recodes of major industry and occupation categories. Thus, a part-time worker on average faces a full compensation penalty of 25.3%a 5.5% benefit penalty on top of the 19.8% wage penalty. Half a Job: Bad and Good Part-Time Jobs in a Changing Labor Market. Philadelphia, Penn. The number of people working in part-time jobs in the U.S. economy who explicitly prefer to work full-time hours in 2019 was about 4.3 million. Wolf, Elke. 2016. 18. The variation in the partially adjusted pay penalty ranges up to 50% (with a small pay premium in only one outlier), although most fall in the 15% to 40% range. Hiring contractors may offer cost savings, making it important to determine the true cost of working with a contractor. The regressions are on the same dependent variable with the same controls and same hierarchical approach. 22. Part-Time Work, Wages, and Productivity: Evidence from Belgian Matched Panel Data. Fallick, Bruce C. 1999. The law on part-time work is set out in the Protection of Employees (Part-Time Work) Act 2001. 2017. 30. Cheltenham, UK: Edward Elgar. 2005; ODorchai, Plasman, and Rycx 2007). Time management Make Time for the Work That Matters by Julian Birkinshaw and Jordan Cohen From the Magazine (September 2013) Summary. Similarly, with panel data on German workers, estimating a wage equation (using a random effects model), capturing the employment history and dynamic choice of employment status, controlling for the institutional context, finds that working part time with a relatively small number of weekly hours has a large causal effect on current wages. Part-time hours of work agreements As of the end of 2019, no national legislation concerning part-time work had been introduced in the United States since H.R. Indeed, findings (unreported here) regarding the size of the wage penalty by the length of workweeks (also Hirsch 2005), reveal that the part-time penalty is, in large part, more of a penalty for fewer work hours. 2019. The structure of the paper is as follows. 2018. The raw wage penalty is expected to be largest. 2: 323333. Why might wage rates per hour be lower for part-time workers relative to full-time workers? In size to a potential add-on penalty of reduced access (coverage) regarding nonwage benefits for part-time workers. McGinnity, Frances, and Patricia McManus. 3: 251256. Without any controls for demographic and work characteristics in the full sample for the raw wage penalty, there was a pay gap of 49% among men and 26% for women. Persons at Work in Nonagricultural Industries by Age, Sex, Race, Hispanic or Latino Ethnicity, Marital Status, and Usual Full- or Part-Time Status, 2019, Employment Situation Release Historical Data, Work Hours in Retail: Room for Improvement, Tackling Unstable and Unpredictable Work Schedules: A Policy Brief on Guaranteed Minimum Hours and Reporting Pay Policies, A Hidden Crisis: Underemployment In Silicon Valleys Hourly Workforce, Overwork and the Slow Convergence in the Gender Gap in Wages. 2015. Others pay much lower wages, such as those in the personal services sector. Just in case you need a simple salary calculator, that works out to be approximately $14.48 an hour. Part-Time Wage Penalties for Women in Prime Age: A Matter of Selection or Segregation? Flexible Daily Work Schedules in U.S. Jobs: Formal Introductions Needed? Industrial Relations 48, no. The degree of voluntariness may play a role, explaining why the penalty may be larger for those who are less likely to prefer part-time working, e.g., men. 2016. Scheduling Shortfalls: Hours Parity as the New Pay Equity. Villanova Law Review 59, no. Finding Tax Preparers and Tax Attorneys is easy by searching our trusted network of top-rated Tax Preparers and Tax Attorneys. For example, in pharmaceutical occupations, the pay penalty has been shrinking, attributable to the reorganizing in that industry (Goldin and Katz 2016). Unreported results show that among 50 different intermediate industry types, 49 have pay penalties. 2016. Harkness, Susan, and Jane Waldfogel. In several industries, the pay penalty is above that of retailmore than 49% in rental and leasing services, at 46% in motion picture and sound recording and in other information services, 45% in internet publishing and broadcasting (though sample size is not large), 44% in petroleum and coal, 38% in beverage/tobacco products, 36% in publishing, and 35% in miscellaneous/nonspecified manufacturing. 1: 2428. Interindustry Part-Time and Full-Time Wage Differentials: Regional and National Analysis. Applied Economics 36, no. It begins with a condensed review of the existing literature and descriptive evidence on the meaning and measurement of part-time compensation differentials. This suggests that part-time workers get paid about 20% less than otherwise comparable full-timers simply because they are in part-time jobs, independent of whatever occupation and industry they work in. As Table 4 shows, this implies that for every dollar of wages, there is 25.2 cents for benefits for full-time workers, but only 19.7 cents per dollar for part-time workers. Campbell, I., G. Whitehouse, and J. Baxter. To put this in perspective, the order of magnitude is more than twice the size of the raw gender gap in the United States (Blau and Kahn 2017; Yu and Kuo 2017; Weeden, Cha, and Bucca 2016; Goldin 2014; Matteazzi, Pailh, and Solaz 2014; Leslie et al. Wilkins, Roger, and Mark Wooden. Notes: W-2 wages are the sum of direct wages, paid leave, and supplemental pay. 2014. www.taxprofessionals.com - TaxProfessionals.com. 25. 2005). 5. Legal Definitions The definition of a part-time job can vary. This means that they should be in proportion to your hours. 2014. The hourly wage penalty for working part time, in the recent U.S. labor market, is a 20% reduction in earnings per hour, even after ones education, experience, occupation, and industry are taken into account. All multivariate regressions use logarithm of the hourly wage as the dependent variable and are weighted using the ORG sample weights. Ben-Ishai, Liz, and Rick McHugh. The PartTime Pay Penalty for Women in Britain. Economic Journal 118, no. Tilly, Chris. MSW Salary Have wage gaps between part-time and full-time jobs decreased or increased over time? By race/ethnicity alone, black and Hispanic workers make up a disproportionate share of those working part time for economic reasons: Hispanics constitute 26.5% of all those working part time for economic reasons, in contrast to being only 17.6% of all those at work. Even those working part time for various noneconomic reasonswhich includes those who likely would prefer full-time work if they did not have such constraints as a lack of support for parenting, health issues, and the need to obtain more educationpay a penalty of over 18%. On the other hand, part-time working might be more productive per hour if there are fatigue effects in the quantity of output (if not quality) over the course of a workday or workweek.12 The higher the skill level of employees, the higher might be both the administrative costs and their relative productivity rate per hour. For men, it is substantially larger; the wage penalty is greater than 25%. In case you are not sure about the calculation, you could seek the help of a tax consultant. 2: 259279. (Contrary to common practice, we avoid labeling people who work part time for noneconomic reasons as those working voluntarily part time because someone who works part time to deal with child care issues or family or personal obligations is likely facing constraints that restrict their choices.) AEI-Brookings-Urban Institute. Yearly Weekly Hourly $2,542 - $3,833 16% of jobs $4,291 is the 25th percentile. By gender, the adjusted wage penalty is 15.9% for women and 25.8% for men, suggesting that men pay a noticeably higher price for working part time. Paid Sick Days Benefit Employers, Workers, and the Economy. While the raw wage penalty for working part time is a massive one, how much of this represents different qualities of part-time and full-time workers, such as their age (a proxy for work experience) or education levels (a proxy for skills brought to a job)? Seasonal Employment / Part-Time Information - U.S. Department of Labor Updated March 10, 2023 Some employers offer certain benefits to part-time employees, like paid vacation days and health insurance. W-2 wages includes the BLS category of direct wages, but adds costs for paid leave and supplemental pay (because these categories are embedded in the CPS definition of wages). Based on. What Is Forex And Should It Be Part Of Your Investment Strategy - Forbes 2020b. The site has been offering remote job site services since 2007, and what makes it unique is that each job is hand-screened to verify legitimacy. When broken out by subranges of weekly hours, there appears to be an hours gradient to the part-time wage penalty. Nonwage benefits include insurance, retirement, and payroll taxes paid by the employer. Work-Life Flexibility Policies: Do Unions Affect Employee Access and Use? ILR Review 67, no. According to the U.S. Department of Labor, this currently equals a minimum of $674 per week, 10% of which can be bonuses and commissions. The sample consists of hourly and non-hourly wage earners, ages 16 and older, in the 20032018 EPI extracts of the CPS-ORG. News conference Operation Family Affair (June 26, 2023) | media 3: 926954. Has the Required Skill Level of Part-Time Jobs Changed over Time? Beyond the Numbers: Employment & Unemployment, vol. Blue collar includes production, transportation, and material moving occupations, and service occupations includes a variety of mostly low-wage occupations such as health care support occupations, food preparation and serving-related occupations, building and grounds cleaning and maintenance occupations, and personal care and service occupations, along with protective service occupations (firefighters, police, corrections officers). Li, Geng, and Brett McCully. A casual employee does not have a firm commitment in advance from their employer to ongoing work with an agreed pattern of work. 2: 215348. Long Workweeks and Strange Hours. ILR Review 68, no. We also substitute the actual hours worked in the previous week being fewer than 35 and contrast. For white workers, the penalty is 20.7%, a tick higher than the overall average, on par with the 20.2% penalty for black workers. Money market accounts let you grow your money more quickly, but without the uncertainty tied to investment accounts. 2011. 2009. Several other national surveys reinforce the large disparities between full-time and part-time workers in a wide range of employee benefits, or access to them. Form W-4 is accompanied by worksheets you can use to calculate how much withholding you need your employer to deduct from your pay check. (Note: penalties are calculated using 20032018 microdata from the Current Population Survey.). The Factors That Make Patients Quit Methadone - Penn LDI Wages and Gender Composition: Why Do Womens Jobs Pay Less? Higher productivity per hour, and thus higher marginal revenue product for an hour of part-time work, would reduce the wage penalty and might even create a wage premium.13 Thus, differences in preferred hours are not a sufficient condition to produce a wage penalty for all part-time jobs, if part-time workers have identical skills and create no fixed labor costs to employerswages would equalize as employers create a mix of jobs only to reflect the preferences of employees. Flexible Work Practices: A Source of Career Premiums or Penalties? Academy of Management Journal 55, no. This also suggests full-time work likely is better conceived of 40 or more hours, when it comes to pay, since working 35 to 39 hours appears to be more of a hybrid between full-time and part-time working, not entirely resembling full-time work at 40 hours or greater. See related work on Irregular work scheduling, Fair workweek, Nonstandard work arrangements, Underemployment, and Wages. This means that otherwise comparable workers who usually work part-time hours earn almost 30% less than their full-time working counterparts. Thus, there is a gradation apparent: The greater the employer role in determining the part-time status of the work, the larger the wage penalty. Thus, we can add another 5.5 percentage points to the estimated wage penalty to obtain the full compensation penalty for part-time jobs. 17. Is There a Causal Effect of Working PartTime on Current and Future Wages? Scandinavian Journal of Economics 118, no. Any such deduction would require the individual to wait till the end of the tax year for a refund of his money. In addition, the over 4 million U.S. workers in part-time jobs who prefer to work full-time hours (at least 35 weekly) (BLS 2020a) pay an even stiffer penalty. The similar size of the part-time wage group across groups suggests that the penalty for part-time working appears to be due to the part-time job itself, experienced by all incumbents across racial/ethnic groups, with only slight differences in size. We use the Basic CPS hourly earnings question, even though employed persons in the ORG are asked about hours per week. Garnero, Andrea, Stephan Kampelmann, and Franois Rycx. State of Working America Wages 2019: A Story of Slow, Uneven, and Unequal Wage Growth over the Last 40 Years. Part-Time/Full-Time Wage Differentials in Australia, Part-Time Private Industry Workers Less Likely to Have Access to Benefits in 2013, National Compensation Survey: Employee Benefits in the United States, Table 22. 2017. In addition, a part-time wage differential can arise if workers are willing to take lower-paid part-time jobs as a way of queuing for higher-paying, full-time jobs (Hirsch 2005).9 Finally, to the extent that a part-time job provides a job amenity, e.g., schedule flexibility, the wage payment could be reduced and still attract and retain labor. About half of the pay gap, 13% among women, is explained by worker characteristics, but the remaining 3% to 10% (by gender) is unexplained (Manning and Petrongolo 2008). Table 2 breaks down the overall and race results by gender. 2020. Labor economic theory suggests that there may be lower human capital among part-time job incumbents, such as skills and experience, as compared with full-timers (Montgomery 1988). Part-time workers earn 29.3% less per hour worked than other workers with similar demographic characteristics and education levels. 2015a. However, this last one only applies to employers that are subject to the Affordable Care Act, which is any employer that has 50 or more full-time employees. 20. Part-Time Work and Industry Growth. Bureau of Labor Statistics Monthly Labor Review, March 1999. 2008. The salary range for a Part Time Worker job is from $31,766 to $37,090 per year in Atlanta, GA. Click on the filter to check out Part Time Worker job salaries by hourly, weekly, biweekly, semimonthly, monthly, and yearly. A wage differential for part-time workers can arise when workers are not fungible (homogeneous) and the employers have preferences regarding how they schedule hours among workers.11. There is mixed evidence, with quite a wide range of estimates. Working 20 or fewer hours has the largest penalty, although not that much larger than working 2029 hours, but noticeably larger than in the 3034 hours range. September 2018. An Introduction to Work Sharing: A Strategy for Preserving Jobs, Creating New Employment and Improving Individual Well-being. In Work Sharing During the Great Recession: New Developments and Beyond, edited by John C. Messenger and Naj Ghosheh. Imagine that you have just taken up part-time employment and your employer has given you a much smaller pay check than you expected thanks to tax deductions and income tax withholding. 2014. Compensation in Part-Time Jobs Versus Full-Time Jobs: What If the Job Is the Same? Economics Letters 56, no. Cambridge, UK: Cambridge University Press. It then explains how we replicated and updated a systematic analysis of the part-time wage penalty that was definitive but used data from 1995 to 2002. The symbols *, **, and *** indicate that the wage penalty is significantly different from zero at the 0.10 level, 0.05 level, and 0.01 level, respectively, using heteroskedasticity-robust standard errors. Such tax deductions are usually calculated as a proportion of your income, regardless of how many hours you work every week. Listed below are several policies that we would need to adopt to address the part-time wage and benefits penalties and some of the key legislative efforts under way to bring them to fruition. A forthcoming report from the Center for Law and Social Policy (Golden and Kim 2020) creates a more complete picture than BLS measures of involuntary part-time working, for three reasons. 526: F28F51. 20 Part-Time Jobs That Pay Well | Indeed.com Part time for noneconomic reasons category includes workers who say they work part time to take care of child care problems or for other family and personal reasons. It is more of a blessing if a part-time job provides the incumbent worker with the number of work hours and schedule that meets their needs or preferences for working, without unduly sacrificing other aspects. You might want to ensure that your employer is not withholding more than he should, you can calculate the withholding amount yourself, using the IRS Withholding Calculator. However, when controlling for unobserved individual heterogeneity (fixed effects) using panel data, part-time working men and women in Australia (Booth and Wood 2008) and in Germany (Wolf 2014) typically earn an hourly pay premium relative to those in full-time jobs.
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