Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250640 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14979
Publisher: 
Institute of Labor Economics (IZA), Bonn
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 employees to decline any workload. We find quantitatively that ZHCs improve welfare by enabling firms with more volatile business conditions to create additional jobs. While weaker than job creation, substitution effects – some jobs that are otherwise viable under regular contracts are advertised as ZHCs – are sizable and likely explain negative reactions against ZHCs. Our model also assesses increased labor-force participation from ZHCs which appeal to individuals who prefer flexible work schedules.
Subjects: 
zero-hours contracts
working hours
gig economy
flexibility
JEL: 
E24
J22
J23
J63
L84
Document Type: 
Working Paper

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