Working Papers in Economics,
University of Gothenburg, Department of Economics

Abstract: This study examines the part-time penalty for natives and immigrants in Sweden. We estimate an endogenous switching regression model, and the results indicate that there is evidence of self-selection into part-time and full-time jobs based on unobservable factors. Hence, individuals with full-time (part-time) jobs have unobserved characteristics that allow them to earn more (less) than average workers with full-time (part-time) jobs. We find that the adjusted part-time wage penalties are 20.9 percent for native males, 25.1 percent for immigrant men, 13.8 percent for native women, and 15.4 percent for immigrant women.

Keywords: Part-time penalty; selection bias; natives; immigrants

JEL-codes: J15; J31

24 pages, September 15, 2008

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