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ARE PART-TIME WOMEN PAID LESS? A MODEL WITH FIRM-SPECIFIC EFFECTS
Authors:MARK MONTGOMERY  JAMES COSGROVE
Abstract:This paper uses data from a survey of child-care establishments to compare part-and full-time wages within two narrow occupations, one high skill and one low skill. Unlike previous studies, it controls for firm-specific effects. We find that when firm-specific effects are accounted for, only the low-skill workers in our sample receive lower wages for working part-time. On the other hand, when compensation is defined to include prorated fringe benefits, establishments appear to compensate both high- and low-skill part-timers at a lower hourly rate.
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