Zero-hours Contracts in a Frictional Labor Market

Juan Dolado, Etienne Lalé () and Hélène Turon

No 22-02, Working Papers from Chair in macroeconomics and forecasting, University of Quebec in Montreal's School of Management

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.

Keywords: Zero-hours contracts; Working hours; Gig economy; Flexibility. (search for similar items in EconPapers)
JEL-codes: E24 J22 J23 J63 L84 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2022-07
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https://chairemacro.esg.uqam.ca/wp-content/uploads/sites/146/ZHC.pdf (application/pdf)

Related works:
Working Paper: Zero-hours Contracts in a Frictional Labour Market (2022)
Working Paper: Zero-hours Contracts in a Frictional Labor 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:bbh:wpaper:22-02

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