The Impact of Human Capital in the American Labor Market - Skills and Earnings in the Part-Time Labor Market

Oct 15, 2026

Uploaded by Connor

Research examining the link between literacy and numeracy skills and earnings in the American part-time labor market, presented as a report in the “The Impact of Human Capital in the American Labor Market” series. The study analyzes 2012–2014 data from PIAAC’s Survey of Adult Skills and focuses on wage penalties, skill effects, and differences between full- and part-time workers across occupational sectors. Findings emphasize that skills matter strongly for part-time earnings during labor shortage and that sector variation is substantial.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages48

Reading Time2 h 1 min

AccessFree to download

Preface

Executive Summary

Introduction

The Wage Penalty

Incidence of Part-Time Employment, Female Employment Shares, and Mean Hourly Wage

Literacy and Numeracy Skills

Job Tenure

Some Implications of the Descriptive Findings

Regression Analysis of Part-Time Hourly Earnings

Effects of Literacy Skills and Other Key Factors

Effects of Numeracy Skills and Other Key Factors

Summary of Key Findings

Appendix

Appendix A: Definitions of Dependent and Independent Variables in Hourly Earnings Regression Models

Appendix B: Estimated Coefficients of Earnings Regressions

The Impact of Human Capital in the American Labor Market Series Skills and Earningsin the Part-Time Labor Market Neeta Fogg, Paul Harrington, and Ishwar Khatiwada Center for Labor Markets and Policy Drexel University Larry Hanover ETS Table of Contents Preface ........................................................................ 1 Executive Summary ...................................................4 Introduction ................................................................6 The Wage Penalty ......................................................7 Incidence of Part-Time Employment, Female Employment Shares, and Mean Hourly Wage........9 Literacy and Numeracy Skills..................................12 Job Tenure.................................................................16 Some Implications of the Descriptive Findings ....17 Regression Analysis of Part-Time Hourly Earnings ....................................................................19 Effects of Literacy Skills and Other Key Factors ...............................................................22 Effects of Numeracy Skills and Other Key Factors ...............................................................26 Summary of Key Findings .......................................29 Appendix ...................................................................32 Appendix A: Definitions of Dependent and Independent Variables in Hourly Earnings Regression Models ...........................................32 Appendix B: Estimated Coefficients of Earnings Regressions .......................................34 Appendix C: Mean Hourly Earnings Included in Earnings Regression Analysis .....................36 Appendix D: About the Data ...........................37 About the Authors ...................................................39 This report was written by: Neeta Fogg Paul Harrington Ishwar Khatiwada Larry Hanover The views expressed in this report are those of the authors and do not necessarily reflect the views of the officers and trustees of Educational Testing Service. Copyright © 2020 by ETS. All rights reserved. ETS and the ETS logo are registered trademarks of ETS. All other trademarks are the property of their respective owners. May 2020 ETS Center for Research on Human Capital and Education Research and Development Educational Testing Service Rosedale Road Princeton, NJ 08541-0001 Suggested citation: Neeta Fogg, Paul Harrington, Ishwar Khatiwada, and Larry Hanover. Skills and Earnings in the Part-Time Labor Market, The Impact of Human Capital in the American Labor Market Series (Princeton, NJ: Educational Testing Service, 2020) . NOTE TO READER This report was completed in the weeks after the COVID-19 pandemic began turning the country upside down, sending Americans across the land into social isolation, throwing millions into unemployment, and shuttering untold numbers of businesses. It will take a long time for the full implications of this crisis to be understood, including the impact to the U.S. economy. Similarly, we cannot speculate what the impact will be on the subject of this report: the part-time labor market. Suffice it to say, however, that we believe these findings on skills and wages will greatly matter regardless of when the economy recovers, or what that recovery looks like. Preface After the end of the Great Recession, the nation's labor-force picture was transformed dramatically, with the unemployment rate dropping from near-historic highs in 2009 to levels that are now at 50-year lows. This swing was the result of job creation that, although unspectacular, far outpaced the slow growth in the U.S. labor force. While this long period of low unemployment obviously was good news, the dynamics behind the changes in the makeup of the workforce came with their own set of significant issues. The year 2017 marked the beginning of a general labor shortage in the United States, with

FAQs

What data and assessment are used for the analysis?

The report uses 2012–2014 data from PIAAC’s Survey of Adult Skills, which measures achievement in key domains including literacy and numeracy.

How does working part time affect hourly wages compared with full-time work?

The authors find a large average hourly wage penalty for workers who work part time instead of full time.

What is the relationship between skills and earnings in the part-time labor market?

During the labor-shortage period, the overall effect of literacy and numeracy skills on part-time workers’ wages is consistent and strong, and sector differences can vary widely.

Oct 15, 2026

Uploaded by Connor