Casual vs. permanent part-time: Discussing The Part-Time Penalty
Cardiff. Martha JIMBO is the economic research director of the indeed hiring lab, we've had her on the show a bunch of times, she's kind of like, the indicators labor market guru or sense, a labor market that's been. Golly. I don't know. Stacey I have called Martha and her team all the names, the indeed hiring lab has been referenced on the show as the vendors of labor market data. And yet you have not yet seen L E vendors totally fallen down in my duty to keep up. There are a lot of vendor movies drives his defense. And I mean, honestly, I haven't seen the new vendors movie either. But it turns out there is kind of a connection between the avengers and the analysis of the labor market that Martha has just completed it has to do with the nature of part-time work. Oh movie idea the avengers go part time. I wonder how Disney would field aren't a lot of the avengers part time as it is. I mean, Tony stark like he like an man he's like part time running a giant not national corporation part. Being a playboy part time saving. Planet earth fulltime making Disney a ton of money time making money. Yeah. I mean in a certain way like the superheroes. Noah lot about parts. True. Just as it is. But it could be an sequel idea studios. Call me, but part time arc, you know. It is a big deal in the US, especially given how many people in the past decade had to take part time work, even though they wanted a fulltime job. Also because of how part time jobs are compensated and the distribution of people who end up getting part time jobs so today on the indicator from planet money, Martha is going to guide Stacey meet through some of the economics of part time work that is coming up right after the break. Support for this NPR podcast and the following message. Come from Jimmy, the regulated exchange making it easy to add bitcoin and other crypto currencies to your portfolio, protecting your investments with insurance oversight and cybersecurity open a free account at Jim ni- dot com slash indicator. Support also comes from American Express you want to build your business. They can help build your business with financing solutions for eligible business customers the powerful backing of American Express don't do business without it. Terms apply. Visit American Express dot com slash business. Martha gamble along with her colleague, Nick bunker, just finished an analysis of part time work in the US. So workers are considered part time when they work you're than thirty five hours a week and Martha's it's really important to understand the nature of part time work because quite a few people work part time, including a lot of people who would really rather be working fulltime as a share of all the people in the economy. Who work or who want to work? The number of part time workers who would rather have fulltime jobs skyrocketed during the recession of ten years ago because not in a fulltime jobs available to them and that number has been coming down in the recovery. It's taken a very long time to come down. It's neared its pre recession lows, but it's not near where it was in the early two thousands. In fact, if that number did fall to where it was in the early two thousands almost another one million people would have fulltime jobs, and those are just the people who are working part time who are officially looking for fulltime work, some people actively choose, of course, to work part time, Martha's that is not always a straightforward choice to choice to work part time, a lot of people choose part-time work out of necessity, for example, if they have a lot of personal obligations raising kids, and they need the flexibility of a part time job others, of course, might just want a better work life balance wanna work fewer hours, but taking a part time job. She find. Often comes at an even bigger cost. Then a lot of people realize, but one thing that crops up is that we often pay part time workers less per hour than a full-time worker will make so it's not just that they're making less because they're working few hours per week. We would all expect that, but they also get paid less for each one of those hours that they work winning occupation pays less money per hour to it's part time workers than to its fulltime workers that is known as the part time penalty. It's not an official term the part time penalty just refers to the difference that tends to occur between what an hour fulltime work pays. And wouldn't our part time work pays and what Martha has done is to look at the different occupations throughout the economy to see which ones have the biggest part time penalty, and then to try and understand why like what those jobs have in common documentation with the single biggest part time penalty is web developer wages for part time. Web developers are forty nine point five percent less than wages for fulltime web developers and that is our planet money indicator. Part time web developers. Make only about half as much per hour as fulltime web developers and web developer is in outlier, but it isn't actually much of an outlier so Martin Nick found at least ten occupations with part time penalties of more than thirty percent. And if you look at those occupations, you will see that they have a few things in common. So a lot of those jobs are in sales. It's also jobs that in general, it's going to be harder to divide up hours. So for instance, if you are working in sales, you have a relationship with a client. It may hurt you if you can't put in the full-time hours to build that relationship, Martha's, the occupation. That have the biggest penalties for working part time are the ones that require workers to always be switched on to be valuable jobs where it's hard to trade shift with another worker, for example, sales people and also jobs like lawyer and banker where workers have a relationship with their clients. They can't just swap their hours with someone else and expect their clients not to notice these jobs, usually don't offer much, lex ability. So those are jobs that have a part time penalty. But there are also some ocupation that actually pay slightly more to people who work part time. Mar the found that the occupation that pays the highest premium for part time workers is known as miscellaneous personal appearance workers. It's kinda how it sounds people who help you care for your personal appearance. For example. This includes people who work in nail salons and part time workers make seven point four percent more per hour in this nation than fulltime workers, that's the highest wage premium. She found for part time workers and Martha's jobs that pay a part time premium tend to be jobs where it is easy for workers to change shifts with each other, in example of this is the healthcare field where nurses and doctors will often work as part of a group in caring for patients. So if one shift ends another one will pick up the next shift, and generally, there's no downside either for the nurses or the patients and registered nurse, by the way is one of the jobs that pays a part time premium or you can also think of waiters and waitresses that also have relatively Lopez. Realty waiters and waitresses tend to work in a team. They work with the busboy or with the receptionist. We've all had the experience where our server has come up to us halfway through the meal and gone, my shift is ending now. But here's the new person who's going to be handling your table, plus Martha's jobs, the pay their part time workers on par with their fulltime workers also tend to be jobs that you can finish in one set bundle of time that you can schedule for example, hairdressers they do not get penalized for working part time hours because you know, your hair dresser might cut your hair once a month or once every few months, but that hairdresser does not have to be in the salon all the time. So jobs, a penalized part time workers tend to be more rigid and less flexible, whereas jobs that don't penalize part time workers do offer some flexibility Martin says that this fact has at least one big societal implication, it raises the gender wage gap. And the reason is that women and mothers in particular are more likely to choose part-time jobs that don't have a big part time penalty. That's because those jobs tend to offer more flexibility. It makes sense that they would choose these jobs, but those jobs tend to be occupations that also pay lower overall incomes to their workers, so women and mothers end up making less money in their careers, and for that to change either men would also have to increasingly choose those flexible occupations, or the rigid inflexible occupations would have to become less rigid and inflexible so that women and mothers could join them perhaps by embracing more of a team approach at work. Actually, you know, what the events are great example of team based approach where sometimes they trade off. We can all learn from the adventures, right? Like if Tony stark goes down the hall can pick up the slack for a little while. Right. And then Thornton step in scarlet widows doing her thing. Like, we should all be learning from the vendors next time, I'm out sick. Maybe Thornton Stephan.