Women working part-time in the UK have hourly earnings that are on average 26 percent less than women working fulltime. Alan Manning and Barbara Petrongolo investigate what's behind this part-time pay penalty.

In 2003, women working part-time in the UK earned, on average, 22% less than women working full-time. Compared to women who work FT, PT women are more likely to have low levels of education, to be in a couple, to have young and numerous children, to work in small establishments in distribution,...