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Zero hours contracts and Labour market policy

Nikhil Datta, Giulia Giupponi and Stephen Machin

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: The evolving nature of atypical work arrangements is studied. A particular focus is placed on one such form of work relation: zero hour contracts (ZHCs). The paper uses existing secondary data and new survey data collected for the specific purpose of studying alternative work arrangements to describe the nature of ZHC work in the UK labour market. The interaction with labour market policy is explored, in the context of the 2016 introduction of the UK’s National Living Wage. ZHC work is shown to be an important feature of today’s work arrangements, and the wage cost shock induced by the new, higher minimum wage resulted in an increased use of ZHCs in the UK social care sector, and in low wage sectors more generally.

Keywords: atypical work arrangements; zero hours contracts; minimum wage (search for similar items in EconPapers)
JEL-codes: J31 J32 J81 (search for similar items in EconPapers)
Date: 2019-06-28
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

Published in Economic Policy, 28, June, 2019. ISSN: 0266-4658

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