Underemployment and Queues for Full Time Jobs: Evidence from Chile

Produced by: 
Universidad de Chile
Available from: 
October 2016
Paper author(s): 
Daniel Jaar
Alejandro González
Esteban Puentes
Topic: 
Labor
Year: 
2016

This article develops a double selection model in order to test whether part-time workers are excluded from full time jobs (underemployed) or choose to put themselves into distinct labour market segments. Results show statistical support for both exclusion and self-selection in the labour market. Additionally, they suggest that underemployment is mostly driven by the structural heterogeneity of the Chilean economy with human capital variables playing a secondary role. Wage equations are estimated as to further characterize each group; they show that the same economic segments that hire more full time workers pay wage premiums, a result consistent with the hypothesis of structural heterogeneity.

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Research section: 
Lacea 2013 annual meeting
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