Part-time workers and economic expansion: comparing the 1980s and 1990s with U.S. state data*

Abstract. Economics know little about how the role of part-time workers affect regional labor market dynamics during economic expansion. This study examines this issue using U.S. state data from the 1980s and 1990s. Compared to the 1980s, the labor market during the late 1990s is associated with widespread labor shortages, making this an excellent comparison of how part-time employment responds to economic growth. One key finding is that part-time employment was less responsive to job growth during the 1990s than the 1980s, especially for women. Several explanations are put forth, including firm responses to labor shortages, employer perceptions of inferior part-time worker characteristics and welfare reform.