One thought on “Why does part-time employment increase in recessions?

  1. Arti says:

    Recessions always entail a few form of labor
    adjustment—indeed, a few labor adjustment is beneficial for the short-
    and long-term performance of the economy—so a comparison with full-time
    work is of lesser practical importance. Since part-time work usually entails worse
    employment conditions and lower pay, it seems natural that policymakers
    should worry about the very large increase in involuntary part-time work
    observed in recessions. However, recent research based on the US labor
    market suggests that involuntary part-time employment is a relatively
    benign labor market outcome when compared to unemployment. In other words, the relevant
    trade-off faced by employers and employees is the one between layoffs
    and reductions in hours, not between reductions in hours and no
    adjustment. The
    comparison to unemployment (instead of full-time employment) is the
    relevant one to make. The
    data show, however, that this hypothesis only accounts for a small part
    of the story [5]. The
    data show, however, that this hypothesis only accounts

Leave a Reply

Your email address will not be published.