Using data from Spanish Social Security records, we investigate the returns to experience for female workers in different flexible work arrangements. Our model consists of four random-effects equations simultaneously estimated using Markov Chain Monte Carlo techniques. We find a large negative wage effect of working part-time (PT), which differs by motherhood status and contract type. We also find that working PT involves lower returns to experience than standard full-time employment and thus a substantial negative wage effect accumulates over time for those employed PT. Finally, our simulations reveal that working PT also raises the probability of working under a fixed-term contract.
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