Template-type: ReDif-Paper 1.0 Author-Name: Nelen Annemarie Author-Name: Grip Andries de Author-Name: Fouarge Didier Author-workplace-name: ROA rm Title: Is Part-Time Employment Beneficial for Firm Productivity? Abstract: This paper analyzes whether part-time employment is beneficial for firm productivityin the service sector. Using a unique dataset on the Dutch pharmacy sectorthat includes the work hours of all employees and a “hard” physical measure offirm productivity, we estimate a production function including heterogeneousemployment shares based on work hours. We find that a larger part-time employmentshare leads to greater firm productivity. Additional data on the timing of labordemand show that part-time employment enables firms to allocate labor moreefficiently. First, firms with part-time workers can bridge the gap between openinghours and a full-time work week. Second, we find that during opening hours part-timeworkers are scheduled differently than full-timers. For example, wefind that part-time workers enable their full-time colleagues to takelunch breaks so that the firm can remain open during these times. Keywords: education, training and the labour market; Series: Research Memoranda Creation-Date: 2011 Number: 002 File-URL: http://digitalarchive.maastrichtuniversity.nl/fedora/objects/guid:bb36cac8-3c18-46df-ae42-d5c06c03f289/datastreams/ASSET1/content File-Format: application/pdf File-Size: 333048 Handle: RePEc:unm:umaror:2011002