A flexible fix? : assessing the labor market penalties to flexible working in Britain

Lamb, Charlotte; Víglundsdóttir, Jana; Zicchieri, Alessandro

A flexible fix? : assessing the labor market penalties to flexible working in Britain

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Lamb, C, Víglundsdóttir, J, Zicchieri, A. A flexible fix? : assessing the labor market penalties to flexible working in Britain. 2020. handle: http://hdl.handle.net/10230/46433

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Abstract

This paper examines the wages and career prospects of employees in flexible work arrangements (FWAs). Using the British Household Panel Survey, we analyse the effect being in a FWA has on hourly wages and the likelihood of promotion. We use the occupational share of employees in FWAs before and after the introduction of "Right to Request" legislation as an instrument to control for sample selection. Applying our instrument in pooled OLS and linear regression models, we find that flexible workers, particularly women, may receive higher wages than their non-flexible counterparts. This supports theoretical arguments that FWAs could increase labour productivity.