Abstract
This paper studies the evolution of the full-time/part-time wage differential among Italian women for the period 1993-2004. A generalized Heckman selection model is applied to estimate the wage equations, controlling for endogeneity in the second step. An observed part-time wage penalty is found. However, using the Oaxaca decomposition technique we actually find a (decreasing) wage premium for part-timers. This can be explained either in terms of over-payment of given characteristics or in terms of the values of the discrimination and the selection components. The individuals’ choice concerning their own type of contract appears to be important in determining the sign and the extent of the wage gap.
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