A Comparison of Hourly Wage Rates for Full- and Part-Time Workers by Occupation, 2007
Originally Posted: July 23, 2009 The majority of full-time workers earn more per hour than part-time workers; in some occupations, however, particularly those in healthcare, part-time workers earn more per hour than their full-time counterparts. There are twenty-seven million part-time workers in the United States. They may work part time by choice, to supplement their income from a full-time job, or because full-time work simply is not an option. Using National Compensation Survey data, this article will answer questions such as the following: How do part-time hourly wages compare with full-time hourly wages? Do the differences in wages vary by occupation? Do these differences vary geographically? By using NCS national and regional wage data to answer these questions, this article provides insight into the wage structure of this sizable part of the U.S. workforce. Prior research on NCS part-time wagesPrevious studies using NCS data have noted the difference in compensation costs of part-time and full-time workers. In his 1994 analysis of the Employer Costs for Employee Compensation (ECEC) program, Mark A. Brinkley writes, “In March 1993, compensation costs for part-time workers in private industry averaged $9.00 per hour, compared with $18.54 per hour worked for full-time workers.”1 Brinkley noted that the employer costs of wages and salaries per hour worked for full-time workers were higher than that of part-time workers; he also found that among the components of compensation cost, “the largest differences between full-time workers and part-time workers” were for benefit costs.2 While Brinkley compared the overall pay differences between full- and part-time workers in all private industry, Michael K. Lettau studied the occupational wage rates of full- and part-time workers in the same establishment. In a December 1994 study,3 Lettau examined data from the Employment Cost Index (ECI), a Principal Federal Economic Indicator, and concluded that part-time workers and full-time workers doing the same job in an establishment do not receive equal pay for the hours worked. He writes, “The results suggest that an individual can expect a lower wage rate if he or she decides to work part-time rather than full-time, and much lower benefits per hour.” In a March 1999 article in the Monthly Labor Review, Lettau and Thomas C. Buchmueller examine benefit costs of full-time workers and part-time workers.4 Using data from the ECI and the National Compensation Survey – Benefits (EBS), the authors conclude that benefit costs are higher for full-time workers and that full-time workers have greater access to benefits than do part-time workers. The findings of these studies are consistent with the notion that, throughout the Nation, part-time workers consistently receive relatively less compensation per hour than full-time workers. The present study examines hourly wage rates for part-time workers and for full-time workers at the national and regional level, predominantly focusing on those situations in which part-time workers earn more per hour than do their full-time counterparts.5 MethodologyFor this study, the authors looked at civilian occupations from the 2007 National Compensation Survey for which there were published wage data for both part-time and full-time positions. Some occupational estimates were available by work level for both full- and part-time workers, particularly in healthcare and service occupations. This article focuses on occupational groups without regard to work level. (A study comparing full- and part-time workers by work levels would be an interesting topic for further analysis.) The study uses a significance test to determine which occupations show a statistically significant difference in part-time hourly wages and full-time hourly wages.6 Employees are classified in the NCS as part time or full time based on the definitions used by each establishment. The NCS provides data on employer costs for wages and salaries and for benefits, as well as details of employer-provided benefits. Data are shown by sector of the economy (private industry and State and local government), occupational groups, selected worker characteristics (such as full time and part time, and union and nonunion), and establishment characteristics (such as number of employees and geographic area).7 NationwideIn the 2007 NCS national wage bulletin, there are 324 occupations for which average earnings for part-time and full-time workers can be compared. A majority of these occupations (194) revealed a statistically significant difference between part-time and full-time wages. Of these 194 occupations, full-time workers almost always had higher earnings rates than part-time workers. Part-time workers had higher wages than full-time workers in only 12 of the 194 occupations. (See table 1.)
Geographic Area DifferencesAs with the national data, when hourly wage data are broken down by geographic area and occupation, full-time workers earn more per hour than part-time workers. Table 2 shows mean hourly earnings, by census division, for those occupations in which part-time workers earn more per hour than full-time workers.8 As can be seen from the table, the most common occupations in which part-time workers earn more per hour than full-time workers are healthcare occupations.9
As mentioned previously, very few part-time workers earn more per hour than their full-time counterparts. The number of occupations published in the divisional bulletins in which part-time workers earn more than full-time workers ranges from zero to eight; one census division, West South Central, published none. The number of occupational categories and specific occupations varies across the census divisions because of sample design and publication standards. (See table 3.)
ConclusionThis analysis shows that the majority of full-time workers earn more per hour than their part-time counterparts. These findings are consistent with previous studies and demonstrate that this relationship is true across census divisions nationwide. For many of the divisions, part-time workers in healthcare occupations earned more per hour than their full-time counterparts.10 Still, this finding is not uniform across all healthcare occupations.
Notes1 See Mark A. Brinkley, “Employer Costs for Employee Compensation to Include Information on Part-time and Full-time Workers,” Compensation and Working Conditions, June 1994. 2 Ibid, p. 4. 3 Michael K. Lettau, “Compensation in Part-time Jobs Versus Full-time Jobs: What if the Job is the Same?,” Bureau of Labor Statistics (BLS) Working Paper 260, Office of Research and Evaluation, December 1994; available on the Internet at http://www.bls.gov/ore/abstract/ec/ec940080.htm. 4 Michael K. Lettau and Thomas C. Buchmueller, “Comparing Benefit Costs for Part-time and Full-time Workers,” Monthly Labor Review, March 1999, pp. 30-35; available on the Internet at http://www.bls.gov/opub/mlr/1999/03/art4full.pdf. 5 Jerome E. King examined the differences between part-time and full-time wage rates in terms of density of part-time workers within occupational category, ratios of benefit costs to total compensation, and other measures. He found marked compositional differences by occupation between private industry and State and local government. He also found that part-time workers received a higher percentage of their total compensation in wages and salaries than did full-time workers, and that part-time workers in the health field typically received higher average hourly earnings than did their full-time counterparts. See “Part-time Workers’ Earnings: Some Comparisons,” Compensation and Working Conditions, Summer 2000, pp. 27-36; available on the Internet at http://www.bls.gov/opub/cwc/archive/summer2000art5.pdf. 6 The authors tested the difference of the standard errors of full-time and part-time mean wages, at a significance level of 0.1, to determine whether an occupation had a significantly higher wage for part-time workers than for full-time workers. For more information, see Research Methods Knowledge Base, on the Internet at http://www.socialresearchmethods.net/kb/power.php. 7 See BLS Handbook of Methods, available on the Internet at http://www.bls.gov/opub/hom/home.htm. 8 The census divisions are as follows: New England comprises Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont; Middle Atlantic comprises New Jersey, New York, and Pennsylvania; South Atlantic comprises Delaware, the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central comprises Alabama, Kentucky, Mississippi, and Tennessee; West South Central comprises Arkansas, Louisiana, Oklahoma, and Texas; East North Central comprises Illinois, Indiana, Michigan, Ohio, and Wisconsin; West North Central comprises Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain comprises Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific comprises Alaska, California, Hawaii, Oregon, and Washington. 9 For more information on hourly wages for full- and part-time workers by occupation and census division, see Nine Census Summaries on the BLS website at http://www.bls.gov/ncs/ocs/compub.htm#Division. 10 Part-time nurses may earn higher wages because they already receive benefit coverage from a primary employer, allowing them to forego benefits in favor of higher pay at their second job. For another example of this occurrence, see Karen Shahpoori and James Smith, “Wages in Profit and Nonprofit Hospitals and Universities,” Compensation and Working Conditions Online, June 2005; available on the Internet at http://www.bls.gov/opub/cwc/cm20050624ar01p1.htm.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tools |
Calculators |
Help |
Info |
