Part-Time Work in Chile

Abstract

This article discusses the evolution and determinants of part-time work in Chile. It tests some hypotheses found in the international literature, to determine whether part-time work is precarious, whether hourly payment is smaller, and whether it constitutes a step toward full-time employment. Evidence is found that part-time work is mostly feminine, and can be precarious in that it can be less stable and more informal. However, hourly wage is slightly higher than in full-time jobs. This gap is examined through a decomposition of Oaxaca, which reveals that wage differences cannot be explained by observable factors. It concludes with a Markov chain analysis using the Casen surveys to determine whether part-time jobs are a transition to full-time jobs, and also steady-state part-time participation is projected, as are long-term participation and employment rates. The results show that, given the current dynamics, the relative share of part-time work over total employment will remain stable, and labor participation will attain the level of developed economies in no less than 25 years.