Looking beyond Average Earnings: Why Are Male and Female Part-Time Employees in the UK More Likely to Be Low Paid Than Their Full-Time Counterparts?

Abstract

This article uses Labour Force Survey data to examine why male and female part-time employees in the UK are more likely to be low paid than their full-time counterparts. This ‘low pay penalty’ is found to be just as large, if not larger, for men compared to women. For both men and women, differences in worker characteristics account for a relatively small proportion of the part-time low pay gap. Of greater importance is the unequal distribution of part-time jobs across the labour market, in particular the close relationship between part-time employment and social class. Using a selection model to adjust for the individual’s estimated propensity to be in (full-time) employment adds a modest amount of explanatory power. Particularly for men, a large ‘unexplained’ component is identified, indicating that even with a similar human capital and labour market profile part-time workers are more likely than full-time workers to be low paid.