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This paper is a cross‐national study of the incidence of part‐time work. The purpose of this paper is to investigate to what extent the difference between Germany and The Netherlands can be explained from the demand side of the labour market.

Several motives of employers for the introduction of part‐time jobs are distinguished. Their relevance is tested by means of firm‐level data for the two countries within the framework of a multivariate analysis.

The study finds that, in The Netherlands, part‐time jobs are more widespread than in Germany. The reasons for this difference are diverse: the difference in industrial structure (more manufacturing in Germany, more services in The Netherlands), less working students in Germany, and probably more reluctance on the side of German employers to meet the preferences of their workers.

The paper fills a gap in the literature on part‐time work, especially about the importance of institutions differing between the countries. This evidence may be useful in designing policies to increase the incidence of part‐time work.