Template-type: ReDif-Paper 1.0 Author-Name: Nelen Annemarie Author-Name: Grip Andries de Author-Name: Fouarge Didier Author-workplace-name: METEOR Title: Is part-time employment beneficial for firm productivity? Abstract: This paper analyzes whether part-time employment is beneficial for firm productivity in the service sector. Using a unique dataset on the Dutch pharmacy sector that includes the work hours of all employees and a “hard” physical measure of firm productivity, we estimate a production function including heterogeneous employment shares based on work hours. We find that a larger part-time employment share leads to greater firm productivity. Additional data on the timing of labor demand show that part-time employment enables firms to allocate labor more efficiently. First, firms with part-time workers can bridge the gap between opening hours and a full-time work week. Second, we find that during opening hours part-time workers are scheduled differently than full-timers. For example, we find that part-time workers enable their full-time colleagues to take lunch breaks so that the firm can remain open during these times. Keywords: labour economics ; Series: Research Memoranda Creation-Date: 2011 Number: 007 File-URL: http://digitalarchive.maastrichtuniversity.nl/fedora/objects/guid:bb36cac8-3c18-46df-ae42-d5c06c03f289/datastreams/ASSET1/content File-Format: application/pdf File-Size: 433954 Handle: RePEc:unm:umamet:2011007