Public policy and part-time employment

VI. Conclusions

What are the policy implications of these findings? One thing is clear: Recently employers have avoided hiring full-time employees. With the dramatic slowing in the growth of full-time jobs has come a rise in the relative importance of part-time employment, particularly of the involuntary kind. The root cause of this phenomenon is suggested by the history of the past two decades, which contain periods of both extremely weak and very strong full-time job growth. The pattern is obvious: When there is strong full-time job growth, involuntary part-time work fades in importance. One other pattern is also evident: The periods of relatively weak full-time job growth and increasing importance of involuntary part-time employment are also times of growth in levels of income taxation and the volume of governmental regulation. By contrast, the period of very pronounced growth in full-time employment and reduced incidence of involuntary part-time work is characterized by lowered income tax rates and the relaxing of governmental regulations. From the policy standpoint, it appears that if involuntary part-time work is a problem, the most direct way to deal with it is to return to the economic policies of the 1981–1989 era that generated such remarkable overall job growth in the American economy.