Analysis of part-time pay in Canada.

Abstract. This paper analyses the difference between part-time and full-time wages in Canada using the 1981 Survey of Work History. Since part-time and full-time workers are distinguished by hours worked and since hours worked and wages are interdependent, selectivity bias occurs if ordinary least squares regression is used. A modification of Heckman's procedure, to account for the fact that part-time hours are doubly truncated, is used to correct this problem. The results indicate that, adjusting for differences in characteristics, the wage differential between part-time and full-time workers is 10 per cent, or one-third the unadjusted differential. Results vary somewhat by sex and marital status. [ABSTRACT FROM AUTHOR]