erc/metu
INTERNATIONAL CONFERENCE IN ECONOMICS  IV
September 13-16, 2000, Ankara

An Analysis of the Full-Time vs. Part-Time Work Decision of Turkish Women

Cem Başlevent (Koc University)

Abstract

This paper presents a modified version of the simple neoclassical labor-leisure model to offer an explanation for the part-time vs. full-time work decision of individuals. The key aspects of the model are that it allows for a part-time wage premium and attaches a market value to the opportunity cost of working in the market beyond certain hours of work. The opportunity cost is measured here as the cost of replacing foregone home production. The model implies that increased demand for work at home is one reason why some individuals decide to work part-time. Empirical findings from reduced and structural form probit models of Turkish women’s decision between full-time and part-time jobs are in accordance with the model's predictions. A significant factor of the decision is the part-time wage premium found to be positive in the case of Turkish female wage workers. Having corrected for the wage premium and the costs of home production, we find that an increase in the market wage is related positively with the probability of working full-time. We also look for evidence regarding the self-selection of workers into part-time and full-time jobs, but find that selectivity is not present. Evidence drawn from the preferences of the unemployed are also supportive of the cost arguments.

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Middle East Technical University
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