SOURCE: Federal Reserve Bank of Richmond

June 08, 2015 11:54 ET

Richmond Fed's Economic Quarterly Examines Post-Recession Part-Time Employment

RICHMOND, VA--(Marketwired - Jun 8, 2015) -  The elevated number of workers employed part time for economic reasons (PTER) in the aftermath of the 2007-09 recession has raised a concern of whether the extent of resource underutilization in the labor market is greater than that captured by the standard unemployment rate. In the latest issue of Economic Quarterly, Richmond Fed economist Marianna Kudlyak, St. Louis Fed economist Maria E. Canon, City University of Hong Kong assistant professor Guannan Luo, and Richmond Fed research assistant Marisa Reed find that changes in the transition probabilities to and from PTER in the aftermath of the recession mainly impact the composition of employment instead of the distribution of individuals between employment and non-employment. Consequently, PTER presents a measure of resource underutilization that captures the quality of employment. Since PTER workers' share is highest in non-routine manual (typically, low-wage) occupations and given recent works on job polarization, it is challenging to disentangle cyclical versus structural factors behind the recent increase in the number of PTER workers.

The full text of this article and others in the latest issue of Economic Quarterly is available on our website.

Also in this issue:

  • Large U.S. Bank Holding Companies During the 2007-09 Financial Crisis: An Overview of the Data by Peter S. Debbaut and Huberto M. Ennis
  • The Real Bills Views of the Founders of the Fed by Robert L. Hetzel

The Economic Quarterly is a free publication containing economic analysis pertinent to Federal Reserve monetary and banking policy. More information is available from the Federal Reserve Bank of Richmond's Research Department at (800) 322-0565 or online.

The Richmond Fed serves the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia. As part of the nation's central bank, we're one of 12 regional Reserve Banks that work together with the Federal Reserve's Board of Governors to strengthen the economy and our communities. We manage the nation's money supply to keep inflation low and help the economy grow. We also supervise and regulate financial institutions to help safeguard our nation's financial system and protect the integrity and efficiency of our payments system.

Contact Information

  • Contact:
    Amanda Kramer
    Senior Managing Editor
    Federal Reserve Bank of Richmond Economic Quarterly
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