Zero-hours Contracts in a Frictional Labor Market

Juan Dolado, Etienne Lalé () and Hélène Turon

CIRANO Working Papers from CIRANO

Abstract: We propose a model to evaluate the U.K.’s zero-hours contract (ZHC) – a contract that exempts employers from the requirement to provide any minimum working hours, and allows workers to decline any workload. We find quantitatively mixed welfare effects of ZHCs. On one hand they unlock job creation among firms that face highly volatile business conditions and increase labor force participation of individuals who prefer flexible work schedules. On the other hand, the use of ZHCs by less volatile firms, where jobs are otherwise viable under regular contracts, reduces welfare and likely explains negative employee reactions to this contract. Nous proposons un modèle pour évaluer le contrat zéro-heures (ZHC) du Royaume-Uni - un contrat qui exempte les employeurs de l'obligation de fournir des heures de travail minimales et qui permet aux travailleurs de refuser toute charge de travail. Nous constatons que les effets quantitatifs des ZHC sur le bien-être sont mitigés. D'une part, ils permettent aux entreprises confrontées à une demande plus volatile de créer des emplois, et ils favorisent la participation au marché du travail des personnes qui préfèrent des horaires de travail flexibles. D'autre part, le recours au ZHC dans les entreprises moins volatiles, où les emplois sont viables dans le cadre de contrats réguliers, réduit le bien-être et explique probablement les réactions négatives des employés vis-à-vis du contrat zéro-heures.

Keywords: Zero-hours contracts; Working hours; Gig economy; Flexibility; Contrats zéro-heures; Heures de travail; Gig economy; Flexibilité (search for similar items in EconPapers)
JEL-codes: E24 J22 J23 J63 L84 (search for similar items in EconPapers)
Date: 2022-01-24
New Economics Papers: this item is included in nep-lma and nep-mac
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Downloads: (external link)
https://cirano.qc.ca/files/publications/2022s-04.pdf

Related works:
Working Paper: Zero-hours Contracts in a Frictional Labor Market (2022)
Working Paper: Zero-hours Contracts in a Frictional Labour Market (2022)
Working Paper: Zero-hours Contracts in a Frictional Labor Market (2021)
Working Paper: Zero-Hours Contracts in a Frictional Labor Market (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2022s-04

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