Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/248577
Authors: 
Avram, Silvia
Year of Publication: 
2020
Series/Report no.: 
ISER Working Paper Series No. 2020-10
Publisher: 
University of Essex, Institute for Social and Economic Research (ISER), Colchester
Abstract: 
This paper experimentally studies labour supply responses to earnings uncertainty. 301 low-income, working age, non-student individuals took part in an on-line experiment simulating standard and zero-hours contractual conditions. Results unambiguously support the hypothesis that work uncertainty discourages work. This is not only because variability in work availability reduced total expected pay but also because uncertainty itself is perceived as detrimental. Uncertainty is avoided even at the cost of lower total earnings. Interactions between work related uncertainty and the benefit system are important. Both the use of benefits as insurance when work is unavailable and benefit sanctions can increase incentives to take up insecure work.
Subjects: 
precarious work
economic insecurity
wages
labour supply
low income
experiment
JEL: 
D8
I38
J83
J88
Document Type: 
Working Paper

Files in This Item:
File
Size
3.71 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.