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Are Estimates of Non‐Standard Employment Wage Penalties Robust to Different Wage Measures? The Case of Zero‐hour Contracts in the UK

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  • Egidio Farina
  • Colin Green
  • Duncan McVicar

Abstract

Evidence suggests that non‐standard jobs are associated with wage penalties. Yet, these jobs possess a range of undesirable characteristics that should generate compensating wage differentials. This evidence relies on derived wage variables, prone to measurement error likely to be correlated with employment contract. Stated‐rate hourly wage questions are not subjected to the same measurement issues. Using zero‐hour contracts in the UK, we show that there is no conditional average ZHC wage penalty once stated‐rate hourly wage measures are used. We discuss implications for policy.

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  • Egidio Farina & Colin Green & Duncan McVicar, 2021. "Are Estimates of Non‐Standard Employment Wage Penalties Robust to Different Wage Measures? The Case of Zero‐hour Contracts in the UK," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 60(3), pages 370-399, July.
    • Handle: RePEc:bla:indres:v:60:y:2021:i:3:p:370-399
    DOI: 10.1111/irel.12284
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    2. Cindy Biesenbeek & Maikel Volkerink, 2023. "The Price of Flexible Jobs: Wage Differentials between Permanent and Flexible Jobs in the Netherlands," De Economist, Springer, vol. 171(4), pages 367-401, December.
    3. Bernardo Fanfani & Filippo Passerini, 2024. "Do Alternative Work Arrangements Substitute Standard Employment? Evidence from Worker-Level Data," Working Papers wp1190, Dipartimento Scienze Economiche, Universita' di Bologna.

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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • M55 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Contracting Devices

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