This paper uses data from a survey of child‐care establishments to compare part‐and full‐time wages within two narrow occupations, one high skill and one low skill. Unlike previous studies, it controls for firm‐specific effects. We find that when firm‐specific effects are accounted for, only the low‐skill workers in our sample receive lower wages for working part‐time. On the other hand, when compensation is defined to include prorated fringe benefits, establishments appear to compensate both high‐ and low‐skill part‐timers at