The long-term consequences of nontraditional employment (ABSTRACT), Monthly Labor Review Online, May 1998

The long-term consequences of nontraditional employment

Marianne A. Ferber
Professor of Economics, University of Illinois, Champaign-Urbana, IL

Jane Waldfogel
Assistant Professor of Social Work and Public Affairs, School of Social Work, Columbia University, New York, NY

Lower pay of former temporary employees and higher pay of men formerly self-employed are likely caused by unobserved heterogeneity. Nonetheless, in wage growth models that eliminate this bias, past part-time work has a negative effect on current wages, which varies with gender and whether the part-time status was voluntary or involuntary. This article explores the question of whether workers who voluntarily choose nontraditional employment will eventually suffer serious deprivation as a result.

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