Part-Time Employment and the Utilisation of Labour Resources

The populations of industrialised countries, particularly in Europe, are ageing. Due to this demographic development social expenditure will increase, while the labour force will be growing only slowly or declining. These developments will have major economic implications. The number of people employed, the productivity per worker and the trend in their real earnings will be important factors constituting the base for levying taxes and premiums for financing social expenditure in the future. In this paper it is argued that the promotion of part-time employment contributes to a better utilisation of the labour supply potential in a country, to the broadening of the base for financial social security expenditure and at the same time reduces the number of benefits drawn. Some policy recommendations to promote part-time employment are also presented.