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Mr. Davide Malacrino and Luigi Pistaferri

, increasing the fraction of workers employed through atypical (part-time or fixed-term) contracts and creating a de facto dual labor market. We document that the rise in part-time work explains much of the rise in earnings inequality, while the rise in fixed-term contracts explains much of the rise in volatility. Both these trends affect the earnings distribution through hours worked: part-time jobs reduce hours worked within a week, while fixed-term contracts reduce the number of weeks worked during the year and increase their volatility. The increase in the prevalence