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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
Author(s) -
Farina Egidio,
Green Colin,
McVicar Duncan
Publication year - 2021
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/irel.12284
Subject(s) - wage , economics , efficiency wage , labour economics , wage rate , zero (linguistics) , range (aeronautics) , hourly wage , compensating differential , econometrics , wage share , engineering , linguistics , philosophy , aerospace engineering
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.