2019
DOI: 10.1016/j.euroecorev.2019.103317
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Cyclical labor costs within jobs

Abstract: Using UK employer-employee panel data, we present novel facts on how wages and working hours respond to the business cycle within jobs. Firms reacted to the Great Recession with substantial real wage cuts and by recruiting more part-time workers. A one percentage point increase in the unemployment rate led to an average decline in real hourly wages of 2.6 percent for new hires as well as for job stayers. Hiring hours worked were substantially procyclical, while job-stayer hours were acyclical. These results sh… Show more

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Cited by 10 publications
(4 citation statements)
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“…We draw on a vast body of research that uses this modeling framework to study unemployment through the behavior of worker transitions between employment and nonemployment states. 2 In our model, in addition to unemployment and nonparticipation, workers can be in fulltime or part-time employment in a private-sector paid position. 3 This specification allows us to separate out fluctuations in the part-time employment share driven by changes within employment and changes between employment and nonemployment states.…”
mentioning
confidence: 99%
“…We draw on a vast body of research that uses this modeling framework to study unemployment through the behavior of worker transitions between employment and nonemployment states. 2 In our model, in addition to unemployment and nonparticipation, workers can be in fulltime or part-time employment in a private-sector paid position. 3 This specification allows us to separate out fluctuations in the part-time employment share driven by changes within employment and changes between employment and nonemployment states.…”
mentioning
confidence: 99%
“…The spread of part-time work results from an increasing supply of this type of work arrangement, providing workers more flexibility in balancing family and work life. Additionally, the tertiarisation of the economy and firms' rising desire for organisational flexibility constitute demand-side factors explaining the increase in part-time and other forms of flexible work (Buddelmeyer et al, 2008;Boeri, 2010;Euwals and Hogerbrugge, 2004;Visser, 2002), especially after the Great Recession, when firms reacted with substantial wage cuts and recruited more parttime workers (Schaefer and Singleton, 2019). Part-time contracts can be considered beneficial if they remain a free individual choice.…”
Section: Literature: An Overviewmentioning
confidence: 99%
“…An additional consideration concerns labour mobility. While there were relatively mild reductions in total employment during the Great Recession, there were increased hires of p/t employees as well as hours' reductions attached to entry-level jobs (Schaefer & Singleton, 2019). We examine the role of reduced overtime in such arrangements by testing the association of weekly overtime hours between job stayers and job changers.…”
Section: F I G U R E 1 0 Percentage Of Employees Covered By a Collect...mentioning
confidence: 99%