Max Planck Institute for Human Development Choices, Constraints or Preferences? Identifying Answers from Part-time Workers Transitions CCSR Seminar Series 14 th of November, 2006 VANESSA GASH

Max Planck Institute for Human Development What is the issue? Why is that women work part-time and men dont? 1 - Women prefer part-time jobs - preference or 2 – Women cannot work full-time given household obligations – constraint. (Hakim 1991, 2000, 2002; McRae 1991, 2003; Fagan and Rubery 1996, Fagan 2001, Warren 2001, Ginn et al 1996…etc etc.. ).

Max Planck Institute for Human Development Aims of the Research Paper Empirical analysis of women part-timers labour market transitions. Do part-timers reveal different LM trajectories and if so why? Three country analysis. Does institutional context structure the transitions of part-time workers? Previous research has failed to compare countries which have a strong public childcare component (Drobnic, Blossfeld and Rohwer 1999; OReilly and Bothfeld 2002). Womens access to childcare is considered pivotal to their ability to work full-time

Max Planck Institute for Human Development Review of the preferences versus constraint debate Review of the institutional factors likely to structure part-time workers transitions Results. Non-parametric and parametric analysis of female part-time workers transitions to; full-time employment, to inactivity and to unemployment. Conclusions Presentation Outline

Max Planck Institute for Human Development Individual action is a function of individual choice. Preference Theory: Preferences determine social outcome (Hakim, 2002). Attribute unexplained differences to preferences (Barrett and Doiron 2001; Petrongolo 2004). Questionable to attribute observed differences to unmeasured preferences. Part-time as chosen.

Max Planck Institute for Human Development Operationalised by three questions: 1- Preferred family employment structure? 2- Who is the main income earner in your household? 3- If you had enough money to not work, would you still work? WORK-CENTERED, ADAPTIVE, HOME-CENTERED. Hakims Preference Theory

Max Planck Institute for Human Development Part-time means of reconciling paid work and family responsibilities. Preferences product of experience. Psychological process of cognitive dissonance (Festinger 1957). Can preferences be met? Part-time as Constraint

Max Planck Institute for Human Development 1- Child and elder care. State investment? DK of GDP, Fr- 1.5 of GDP, UK – 0.31GDP 2- Full-time working hours compatible with social/home life. Proportion of workers working more than 45 hours per week (OECD-2001). DK: 25% of men, 7% of women. FR: 18% of men, 7% of women. UK: 43% of men, 12% of women. 3- General institutional compatibility of full-time (p/m)aternal employment, i.e. school hours, shop-opening times. Which institutions might allow women to be true chosen part-time workers?

Max Planck Institute for Human Development Comparative Indicators: Female Employment Female Employment Rate (OECD) Proportion Part-time (OECD) Quality of Part-time jobs %Wage penalty Low Skilled Jobs Denmark noyes France no United-Kingdom yes

Max Planck Institute for Human Development The Analysis Part-timers transitions in three countries which provide different opportunity structures for part-time work to be a chosen. 1- Denmark and France provide workers with access to childcare. 2- Denmark and France provide better quality part-time work. 3- Gender contract more egalitarian in Denmark and France, institutional structures more supportive of full-time.

Max Planck Institute for Human Development The Data European Community Household Panel ( ) The ECHP is a standardised comparative cross-national survey. The samples were drawn by each member state as simple random samples, with information collected from respondents in face-to-face interviews in each panel year ( ). The data set contains information both at the individual and household levels relating to human capital acquisition, occupation and industrial location.

Max Planck Institute for Human Development The Data Wave 1 (1994) Household Interviews Wave 1 (1994) Personal Interviews Response rate W1 Attrition rate W1 and 2 Denmark 3,4825, %11% France 7,34414, %10% United-Kingdom (not BHPS) 5,77910, %23% EU (12) 60,819128,04373%

Max Planck Institute for Human Development Modelling Strategy The statistical technique applied, event history analysis, allows one examine the transition rates of part-time workers. Key statistical concept is of the hazard/transition rate: conditional likelihood that an event takes place during a time interval t -> t+1, conditional on it not having occurred before t. Dependent variable is the duration of the individual in a part-time job. Dep. variable was constructed using information on job-start and job- end dates. NO calendar data in ECHP that distinguishes between types of employment. Allows for a distinction between within and between job changes.

Max Planck Institute for Human Development Part-time Workers Transitions Three Transitions: 1- Part-time (<30 hours) to Full-time (+30 hours). 2- Part-time to Inactivity (Housewive/other economically inactive). 3- Part-time to Unemployment.

Max Planck Institute for Human Development Measuring Preferences and Constraints Constraint: Time varying categorical variable of the number of children within the household. (1= 0-3, 4-12, years). EXPECT : N of Children to constrain PTs trsn to FT in countries with little/no childcare (UK). Preferences: Difficult to measure but reasons for PT used as a proxy. (Choice, Housework, Under-employed, other) EXPECT : Chosen part-time to make fewer transitions to full-time (Expected to be true of all countries).

Max Planck Institute for Human Development Transition from PT to Full-time: Hypotheses H1: Different outcomes by preferences, with chosen part-timers LESS likely to make transitions to full-time. H2: UK part-time workers transitions more likely to be constrained, with constraints (as a result of the institutional structure) over- riding preferences. H3: DK part-time transitions are most likely to be a function of preference, with institutional structure offering worker-carers a real choice. H4: Constraining effect of children within the home on transitions to full-time in the UK only (where institutions are expected to constrain workers).

Max Planck Institute for Human Development Transition from PT to INACTIVITY: Hypotheses H1: Preferences are likely to be predictive of transitions to inactivity. H2: Number of children within the home expected to increase transition rate in countries with little public childcare (UK).

Max Planck Institute for Human Development Transition from PT to Unemployment: Hypotheses H1: Preferences should have NO impact on transitions to unemployment.

Max Planck Institute for Human Development

Max Planck Institute for Human Development

Max Planck Institute for Human Development

Max Planck Institute for Human Development Model Strategy -Piecewise constant exponential model of the transitions of female part-time workers to full-time, inactivity and unemployment. -Controlling for: educational level (3 cat), skills training, age (5 cat ), unemployment experience, occupation (5 cat), firm size (4 cat) and industrial sector.

Max Planck Institute for Human Development Piecewise Constant Exponential Model: PT to FT DenmarkFranceUnited-Kingdom Reasons for PART-TIME: CHILDCARE -ns Reasons for PART-TIME: CHOSEN ns - Reasons for PART-TIME: OTHER -ns (REF: UNDER-EMPLOYED) Children aged (1-3yrs) +ns- Children aged (4-12yrs) ns - Children aged (13-18yrs) +ns (Ref – no children

Max Planck Institute for Human Development Piecewise Constant Exponential Model: PT to INA DenmarkFranceUnited-Kingdom Reasons for PART-TIME: CHILDCARE ns Reasons for PART-TIME: CHOSEN ns+ Reasons for PART-TIME: OTHER ns+ (REF: UNDER-EMPLOYED) Children aged (1-3yrs) ns+ Children aged (4-12yrs) ns Children aged (13-18yrs) ns- (Ref – no children

Max Planck Institute for Human Development Piecewise Exponential Model: PT to UNEMP DenmarkFranceUnited-Kingdom Reasons for PART-TIME: CHILDCARE ns Reasons for PART-TIME: CHOSEN ns Reasons for PART-TIME: OTHER ns (REF: UNDER-EMPLOYED) Children aged (1-3yrs) ns Children aged (4-12yrs) ns na Children aged (13-18yrs) ns + (Ref – no children

Max Planck Institute for Human Development Conclusion PT-INA All part-time more time dependant with UK part-time the most likely to make these transitions. PT-UNEMP DK and FR part-time employment disproportionately exposed to unemployment. Strong cross-national differences in part-time workers outcomes. PT-FT UK part-time employment is time dependant suggesting: either strong preferences or strong constraints. No evidence of either for DK or FR, where the S(F) were the same.

Max Planck Institute for Human Development Conclusion Preferences/Reasons for part-time are of limited value in predicting future transitions. They do work in the right direction, in some countries, but not sufficiently to suggest that they explain why women work part- time. Of most value in explaining transitions to full-time, of no value to predict transitions to unemployment.

Max Planck Institute for Human Development Conclusion Institutional context structures outcomes. N of children had NO negative impact on part-timers transtions to full-time in countries with public childcare and/or little long hours working culture, DK and FR. In the UK, children constrained PTs trsn to FT. N of children did however increase French part-timers transtions to inactivity, but only for very young children. N of children found to increase UK womens unemployment risk.

Max Planck Institute for Human Development Thanks for listening!